By Scott J. Brown, Ph.D., Raymond James
Productivity – Theoretically, there is no single variable more important to the economy than productivity, or output per worker. Productivity growth is how we get improved living standards over time. Faster productivity helps to offset the impact of wage growth, supporting gains in corporate profits. However, in practice, the productivity estimate is among the most troublesome of economic statistics. Productivity growth has slowed over the last week, in the U.S. and worldwide. Efforts to boost productivity growth should be a priority, as improvement would help to counter slower growth in the workforce.