PRODUKTIVNOST KAO IZAZOV
THE PRODUCTIVITY CHALLENGE

Author(s): Dušan Mramor, Tjaša Redek, Tilen Burgar, Urška Lovšin, Teja Vrščaj
Subject(s): Economy, Socio-Economic Research
Published by: Finrar d.o.o Banja Luka
Keywords: productivity; global challenges; digitization; innovation;
Summary/Abstract: In the last few decades, the rate of labor productivity at the global level has been declining. The situation is more unfavorable in developed economies compared to underdeveloped and developing economies. The latest estimates show a global downward trend of 1.7 percent between 2011 and 2019. Current economic and social challenges such as health risks, climate change and environmental disruption, aging population, contested shifting of world powers are increasingly focusing on the problem of labor productivity. Increasing the productivity growth rate is seen as a means to solve these problems faster. The paper analyzes labor productivity trends and the factors that affect them as well as expected trends. Labor productivity is treated from both micro and macro aspects where the complementarity of these two approaches is indicated. There is no exact answer, ie the consent of the authors to the question of the cause of the decline in labor productivity. Unlocking the productivity potential requires a holistic approach, combining measures both on firm and external levels. To incentivize long-term changes in productivity trend, companies need to invest in digitalization, innovation and intangible capital, in addition to propelling business ecosystems, achieving a better position within the value chain. As productivity advancements are crucial to increase nation’s living standards, a significant effort should be put towards its support also in the macro environment.

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