Automation, Productivity, and Growth

Productivity growth makes many things possible.

The informal economy tends to favour employment growth over productivity growth.

Indeed, productivity growth in India s service sector matches productivity growth in China s manufacturing sector, thereby reducing poverty by enabling wages to rise.

Rapid output growth without equally rapid capital stock or employment growth must have reflected rapid productivity growth.

There is no magical path to higher productivity growth.

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

Despite some progress, the region continues to struggle with negative productivity growth rates, low productivity employment and underemployment.

This disparity reflected some differences in productivity growth but even more so differences in wage growth.

High oil prices also threaten to slow long term productivity growth.

Productivity growth has an impact on poverty because productivity drives wage increases, which help to improve the standard of living.

This is true even in services, despite slow productivity growth in Europe.

Italy s new leaders must address this situation by decoupling labor s contribution to productivity growth from that of capital and total factor productivity.

That encouraged investment spending, which in turn drove productivity gains and output growth.

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

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

The country requires human and physical capital to raise productivity and achieve sustained growth.

But, over the same period, annual GDP growth has averaged a modest 3.5 , and productivity growth has slipped into negative territory.

This structure contrasts with the pre 1980 business cycle, which rested on wage growth tied to productivity growth and full employment.

Assuming slower growth in the labor force than in the past decade, no rise in productivity due to capital accumulation, and a decline in multifactor productivity growth to its pre 2000 average implies that annual potential GDP growth will be only 1.4 .

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.

Financial innovation is a great engine of productivity growth and economic well being . Again, no.

Wages have stagnated despite strong productivity growth, while the trade deficit has set new records.

This means that the rich have been creaming off a giant share of productivity growth.

The reduction of poverty as well as working poverty are also dependent on productivity growth.

Productivity growth stems from enhanced adaptive capabilities to use modern technology and commercialize new knowledge.

The productivity growth that was sustained through the downturn presented both an opportunity and a challenge.

Service sector productivity growth in formerly manufacturing heavy Asian economies has been dismal by international standards.

Even structural reforms that will eventually increase productivity growth can be recessionary in the short run.

Unless it has achieved high enough levels of productivity and growth, it will miss its chance.

Rapid productivity increases in manufacturing had outpaced growth in demand, which meant that manufacturing employment decreased.

They facilitate technology transfer, create jobs, boost productivity, enhance competitiveness, accelerate economic growth and eliminate poverty.

Overall, productivity per worker, which is the major component of growth from within , has consistently declined.

Fostering growth and productivity is central to UNIDO's highly focused sectoral, regional and country specific programmes.

The growth of agricultural productivity is the strongest predictor of the reduction of extreme poverty. 29

Sustained rapid growth is the result of poorer countries catching up to rich countries productivity levels not of growth in the rich countries themselves.

Standardization and liberalization in European telecoms underpinned 9 growth in value added and productivity in this period, compared to 6 growth in the US.

In that region, increases in agricultural productivity, reductions in population growth, improved governance and economic growth would together serve to reduce poverty and hunger.

But, even if rapid productivity growth is possible under current circumstances, it cannot be taken for granted.

Economies hooked on this model find themselves excessively specialized in primary products that promise little productivity growth.

The high tech revolutions behind the very real new economy, which have accelerated American companies productivity growth.

The summit rightly focuses on the direct links between nutrition and productivity, economic growth, and political stability.

Productivity growth is a crucial source of sustainable, non inflationary improvements in living standards and employment opportunities.

Employment with rising productivity can set off a virtuous cycle of economic growth, leading to poverty reduction.

Fast forward through the '90s, we had the dotcom revolution and a temporary rise in productivity growth.