Productivity measures the efficiency of production in terms of its inputs of resources such as labour, capital, energy or materials. It is the input into a productive activity per unit of its output. The productivity of a national economy normally refers to its output (GDP in real terms) per unit of labour use (hours worked). Technological progress has contributed to ongoing increases in national productivity. The slow-down in productivity growth since the Great Recession has been caused by changes in mix of production towards services, lower rates of investment, changes in the labour market weakening workers’ conditions and low wage growth relative to output-price growth.
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