Labor productivity

According the U.S. Labor Bureau of Statistics, "Labor productivity is a measure of economic performance that compares the amount of output with the amount of labor used to produce that output."

Investopedia says about the importance of labor productivity to an economy, "Labor productivity is largely driven by investment in capital, technological progress, and human capital development. Labor productivity is directly linked to improved standards of living in the form of higher consumption. As an economy's labor productivity grows, it produces more goods and services for the same amount of relative work. This increase in output makes it possible to consume more of the goods and services for an increasingly reasonable price."

According to Yahoo Finance: "Efficiency in production, also coined as productivity, is one of the major driving forces behind economic resilience in a country."

Investopedia indicates: "Education tends to raise productivity and creativity, as well as stimulate entrepreneurship and technological breakthroughs. All of these factors lead to greater output and economic growth."

In an economy, one of the causes of wage raises is an increase in marginal labor productivity rates.

How an economy or company/organization can improve its labor productivity

• Labor Productivity: What It Is, How to Calculate & Improve It, Investopedia
• What Determines Labor Productivity?, Investopedia
• How to Measure — and Improve — Labor Productivity, Wharton School of the University of Pennsylvania.

Labor productivity of the United States

See also: Labor productivity rate of the United States

In terms of the quality of its labor, the U.S. labor market is in line with those of other developed countries.

United States in comparison to other countries in the world as far as labor productivity

Investopedia says about the importance of labor productivity to an economy, "Labor productivity is largely driven by investment in capital, technological progress, and human capital development. Labor productivity is directly linked to improved standards of living in the form of higher consumption."

According the Yahoo Finance: "According to Yahoo Finance: "Efficiency in production, also coined as productivity, is one of the major driving forces behind economic resilience in a country... The United States has one of the strongest economies in the world. The country hosts some of the largest companies in the world, which contributes to the high GDP per capita in the country."

As can be seen in the map above, the USA has one of the highest labor productivity rates in the world.

External links

• Increased productivity creates economic growth, Donor Committee for Enterprise Development website