Source: FARM DOC DAILY, UNIV. OF ILLINOIS, 9/14/18

Increasing labor productivity enables an industry or economy to produce the same amount or more output with fewer workers.  Because labor productivity is directly related to output, it has a major impact on economic growth and the standard of living.  U.S. labor productivity growth since 2011, at an annual rate 0.4 percent, is lower than the annual growth rate of 2.5 percent year experienced from 1995 to 2010 (Wolla, 2017).  Unless this growth rate of labor productivity increases, slow economic growth rates and relatively low wage rate increases are likely.

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