“Economic growth in the recent past has been led by increase in labour productivity”. Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (250 words) [2022]
The statement “economic growth in the recent past has been led by an increase in labor productivity” suggests that the growth in the economy has been driven, at least in part, by the ability of workers to produce more output per unit of input (e.g. per hour of work). In other words, labor productivity is a measure of how efficiently workers are able to produce goods and services, and an increase in labor productivity can lead to economic growth by increasing the output of the economy.
There are a number of factors that can contribute to an increase in labor productivity, including technological progress, improved education and training, and the adoption of best practices and innovative business models. These factors can help workers to be more efficient and effective in their work, which can lead to an increase in output and economic growth.
To create more jobs without compromising labor productivity, it may be necessary to adopt a growth pattern that focuses on increasing the efficiency and competitiveness of the economy. This could involve investing in research and development, education and training, and infrastructure, as well as promoting entrepreneurship and innovation. Additionally, it may be necessary to address any barriers to growth, such as regulatory constraints, bureaucracy, and corruption, which can hinder the ability of businesses to operate effectively and increase their productivity. By focusing on these factors, it may be possible to achieve economic growth that creates more jobs and enhances labor productivity, without compromising either.
