What is considered the best measure of productivity growth in the U.S. economy?

The best measure of productivity growth in the U.S. economy is increases in national income per worker hour. This metric directly ties economic output to labor input, measuring how efficiently labor is being utilized to generate income. It reflects the value generated by each hour of work, which is a critical indicator of overall productivity.

As productivity increases, it typically leads to higher wages and improved living standards, reinforcing its significance as a measure. While total economic output is important, it does not account for how much of this output is due to changes in the number of workers or hours worked; therefore, it can be misleading.

Improvements in technological advancements can contribute to growth in productivity, but they are not a direct measure themselves. Likewise, while decreases in the unemployment rate can indicate a growing economy, they do not necessarily reflect productivity changes since an increase in employment does not guarantee improvements in output per hour worked.