In the long term, overall economic growth depends on growth in the labor force and its productivity.

The labor market has been devastated by the crisis and is deeply segmented, with productivity growth stalled.

Raising the euro area 's growth potential requires indeed an increase in both labour input and labour productivity .

At the same time , while labour productivity growth has decelerated , there are some indications that labour cost growth has been rising in recent quarters .

Europe s only hope for sustained growth is to boost productivity, so that it can derive more value from its shrinking workforce.

A rapid reduction in unit labor costs, through structural reforms that increased productivity growth in excess of wages, is just as unlikely.

But gains in measured productivity growth from this source are not permanent changes, so a large part of the reported reductions in unit labor costs are temporary.

As various studies have shown, CMEs achieve greater increases in labour productivity growth and faster technological progress than LMEs4.

Moreover , wage growth has been picking up in recent quarters , at a time when labour productivity growth has decelerated , resulting in sharp increases in unit labour costs .

Prices , productivity and growth ...

Automation, Productivity, and Growth

Moreover , productivity growth remains weak , constraining general income growth .

Inflation is bad for growth and productivity.

Why does slow productivity growth translate into high costs?

This would support both a higher level and stronger growth rate of labour productivity in the services sector , promote a more dynamic economy and create more jobs .

True, there are reasons to reassess a country s potential growth in line with new information on labor market conditions, investment, and productivity.

Unit labor costs reflect compensation levels and productivity gains in productivity can offset the effect of wage growth.

In Western Europe, growth in labor productivity (output per hour worked) has been decelerating for decades.

Moreover , strong wage growth in the first half of the year , in spite of a weaker growth momentum , combined with a deceleration in labour productivity growth during the same period , resulted in a significant increase in unit labour cost .

Furthermore , wage increases need to remain responsive to changes in labour productivity growth , labour market conditions and developments in competitor countries .

Japan has no alternative other than to do everything necessary and feasible to enhance its labor productivity.

Second , output , employment and productivity growth are reviewed .

Without stronger productivity gains there, economic growth will prove elusive.

In particular, they show that services have exhibited unconditional convergence in productivity recently. That is, countries furthest away from the global frontier of labor productivity have seen the fastest productivity growth in services.

The contribution of labour productivity to the expansion of euro area output growth has an even less impressive record in recent years , since its growth rate has tended to decelerate significantly since the beginning of the 1990s .

They argue that rapid financial sector growth reduces productivity growth in other sectors.

But these changes, though necessary, were insufficient to deliver growth in productivity and output.

I did some quick calculations. I took the last 20 years of GDP growth and the last 20 years of labor productivity growth and used those in a fairly straightforward way to try to project how many jobs the economy was going to need to keep growing, and this is the line that I came up with.

At accession the productivity level of the EU will fall, but the growth potential will increase considerably.

As labour productivity growth is projected to remain roughly stable , this implies a projection of increasing unit labour cost growth over the horizon .

Reforms to strengthen productivity growth would further support the adjustment process of these economies .

Reforms to strengthen productivity growth would further support the adjustment process of these economies .

Reforms to strengthen productivity growth would further support the adjustment process of these economies . back to top

Productivity growth is not about working longer it is about generating more output per unit of labor input.

The projections for real GDP growth and employment imply that labour productivity growth will slowly pick up .

Social partners will need to contribute to price stability and employment growth by keeping wage increases in line with labour productivity growth and developments in competitor countries .

With capital intensity increasing significantly faster than labor productivity in China, the inefficiency of investment is clear.

India's demographics are considerably better than China's, and the size and growth rate of a country's workforce is one of the two key factors that drive long term economic performance the other being productivity.

To reclaim its promise, India must foster a new generation of productivity growth.

Poor productivity growth and stubborn unemployment are evidence that their economies require comprehensive transformation.

Ceteris paribus , the higher the productivity rate of growth , the lower the inflation rate and , conversely , it may be argued that the higher the inflation rate , the lower the productivity growth .

All economies have sub units across which economic productivity, growth, and dynamism vary considerably.

However , hourly labour productivity in the euro area has been relatively low since the mid 1990s .

And, despite the spike in unemployment, productivity growth in the eurozone is decidedly negative.

In 2009 , higher labour productivity growth and lower wage growth are projected to dampen domestic cost pressures , but growth in profit margins is expected to rise again .