Number: RS21960
Title: Is High Productivity Growth Compatible With Employment Growth?
Authors: Marc Labonte, Government and Finance Division 
Abstract: Productivity growth does not affect all industries equally and may not lead to employment growth in the same industry in which it has occurred. This has been the case with manufacturing in recent decades. But while productivity growth changes the composition of employment, there is no theory or evidence indicating that it changes the overall level of employment. Thus, productivity-enhancing policies intended to raise living standards are unlikely to have negative side effects.
Pages: 6
Date: October 26, 2004