Labour productivity rises in times of low economic growth
A revised version of this article has been published on 23 November 2007.
A country’s economic growth is generated by increasing labour productivity or increasing labour volume. In times of low economic growth, businesses often take measure to raise productivity.
Recently published macro-economic figures for the years 1969-2006 show this. Before the second oil crisis in 1979, economic growth in the Netherlands was mainly generated by the increase in labour productivity, and developments in labour volume were much less important. After the crisis this changed and - as a consequence of pay restraints and the increased participation of women - economic growth was mainly the result of an increase in labour volume.
GDP and labour productivity