In terms of economic growth, what does an increase in national income per worker hour indicate?

An increase in national income per worker hour is a strong indicator of improved productivity growth. This metric suggests that workers are generating more economic output for each hour they work, which typically results from several factors, including advancements in technology, better training, more efficient processes, or greater investment in capital. Such enhancements enable workers to produce more goods and services within the same time frame, reflecting a healthier and more dynamic economy.

As national income rises in relation to hours worked, it demonstrates that resources are being utilized more effectively and that the economy is likely operating at a more productive level. This increase contributes positively to overall economic growth and can lead to higher standards of living. Moreover, it often signals businesses are thriving, fostering further investment and job creation, rather than stagnation or increasing unemployment rates.