The Case for Investing More in People

26th August 2019

Productivity in most developed economies has been anaemic. In the decade between 2005 and 2015, labor productivity was less than 1% for 7 of the 10 years – this can be linked to the fact wages have been stagnant. Of course, low productivity can depress wages, but in recent decades, wages haven’t grown as much as expected even during periods of robust economic productivity growth.