Productivity and decent work

Productivity is a cornerstone of economic development and improved living standards. It drives economic growth by allowing more output to be produced with the same or fewer resources, leading to higher per capita income.

The ILO has an important role to play in fostering a virtuous cycle between productivity and decent work by addressing these disparities and promoting integrated strategies to enhance both business performance and job quality. Productivity growth contributes to job creation by enabling enterprises to expand, innovate, and invest in new areas, thereby increasing demand for labour. In turn, higher quality jobs make for more productive employment. However, a virtuous cycle between productivity growth and decent work is not automatic and requires a coherent effort across a range of policy domains. Balancing productivity growth with decent work requires an inclusive and comprehensive approach.

ILO approaches such as Productivity Ecosystems for Decent Work integrate productivity-enhancing policies and relevant interventions at the micro, sectoral and macro levels. Leveraging its tripartite structure, the ILO brings together governments, employers and workers to address the root causes of productivity stagnation and labour market inequalities. They ensure that productivity gains benefit both workers and enterprises, thus strengthening the link between economic performance, environmental consideration, and social justice.