In economics, what term describes a sustained increase in output per worker or per hour worked?

In economics, labor productivity growth describes a sustained increase in output per worker or per hour worked.

Labor productivity is commonly calculated by dividing real output by a measure of labor input, such as hours worked. Growth in this measure means that the economy produces more inflation-adjusted goods and services for each unit of labor time. It does not necessarily mean that every individual worker is personally working harder.

Productivity can rise because of improved technology, better worker skills, more effective management, increased capital per worker, or infrastructure improvements. It is a major long-run source of higher living standards because it can support higher real wages and more output.

Productivity is different from nominal wage growth, which measures pay before adjusting for prices. It is also different from employment growth: an economy can employ more people while productivity per hour falls, or raise productivity while total employment declines.