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China Center Chart of the Week: Labor productivity growth in China continues to slow – even from its low base level

This chart shows a breakdown of China’s GDP growth into the rate of growth in the number of workers and the growth of output produced per worker (on average) in China. A five-year aggregate views show the medium-term trend as well. Labor productivity is a critical economic indicator because it is strongly related to measures of living standards (e.g., per capita income). The higher the relative level of labor productivity, the higher the per capita income and the greater the chance for economic and wealth expansion.

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