Growth in labor productivity (typically measured as real output per hour of work) is critical to economic health because it is the primary source of real wage growth. Unusually strong output (GDP) in the first quarter of 1997 led to a 2% increase in nonfarm business productivity, the largest of the last three years.
Suggested citation: “Labor Productivity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-06, pp. 12, 06.01.1997.