Productivity is a measure of how efficiently inputs are being used within the economy to produce outputs. Productivity is commonly defined as a ratio of a volume measure of output to a volume measure of input. Growth in productivity means that a nation produces more output from the same amount of input. Productivity growth is an important contributing factor to a nations long-term material standard of living.
Both ageing and globalisation increase the emphasis on New Zealands labour productivity performance, which will become another focus of our study on labour market futures.
While much of New Zealands recent economic success has depended on a growing labour force, constraints in labour supply mean future economic growth will depend more on improved labour productivity.
Workforce 2020 will seek to support increased productivity in New Zealands future workforce and workplaces. This component of our programme will be informed by projects undertaken in Workforce 2020, and will complement the work of other agencies. More information about this topic will be forthcoming.
For more information on productivity check these publications: