Labor Productivity Growth

Labor productivity growth refers to the increase in the amount of goods and services produced by workers over a specific period. When productivity grows, each worker is able to create more output in the same amount of time, often due to better technology, improved skills, or more efficient processes. This growth is essential for economic progress, as it can lead to higher wages and improved living standards, enabling businesses to produce more without necessarily increasing the number of employees. In essence, it reflects how effectively labor is utilized in generating value.