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SGS Economics and Planning Productivity or perish

Productivity or perish - the Australian challenge for the 21st century

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American economist Paul Krugman once famously said, “Productivity isn’t everything, but in the long run, it’s nearly everything.” Productivity is the efficiency with which firms, industry, and the economy, convert inputs such as labour, capital, and raw materials, into income. It increases when output grows faster than input and is a crucial factor driving improved standards of living. Labour productivity, in particular, is essential in driving growth in living standards. Therefore, cities, regions, and countries devote extra time and effort to improve in this area. How can regions improve productivity across the country? Read on.