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OECD - Growth in GDP per capita and labour productivity

Labour productivity is a key driver of economic growth and changes in living standards. Labour productivity growth implies a higher level of output for every hour worked. This can be achieved if more capital is used in production or through improved overall efficiency with which labour and capital are used together, i.e., higher multifactor productivity growth (MFP). Labour productivity is also a key driver of international competitiveness, e.g. as measured by Unit Labour Costs (ULC).

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