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Labor productivity is one of the capacities that makes economic prosperity possible--along with natural resources, materials, and energy discussed in other indicators--and in this sense, it is an important variable to track in the context of sustainable development. It can be measured as the output of all workers per hour. In general, as workers produce more per hour, wages increase and standards of living rise. Total labor productivity in the United States has increased since 1970, but the annual rate of increase has slowed. (see Figure 4.2.)
A number of factors drive increases in labor productivity and economic growth, such as increases in physical capital, improvements in human capital, and technological changes. In general, if labor productivity continues to rise, future generations will be able to produce more goods and services with a given amount of labor.
Link(s) to be added, when feasible, to data at level of detail suitable for use at the community level.
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http://www.sdi.gov/indicators/lc_labor.htm Last Modified: May 13, 2002 |