However, in some circumstances, robust measures of capital input can be hard to find. Labour productivity and multifactor productivity both increase over the long term. Main trends in Australia's productivity performance Official Australian Bureau of Statistics measures of Australia's productivity performance are available from the mid-1960s. Australia's productivity performance compared with other high-income countries was relatively poor over a number of decades, up until the 1990s. However, Australia was only one of a few high-income countries to show an acceleration in productivity growth in the 1990s.
Productivity growth is a crucial source of growth in living standards.
Productivity growth means more value is added in production and this means more income is available to be distributed. In fact, it is likely to mean lower average wages and lower rates of profit. But, when there is productivity growth, even the existing commitment of resources generates more output and income. Income generated per unit of input increases. Additional resources are also attracted into production and can be profitably employed.