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Work Sample - Arch Design 3
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Michael McLaughlin
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Labour productivity grew on average at the rapid 5 per cent annual rate in the Finnish manufacturing industry from 1975 to 2003. The labour productivity growth was broad-based in the 1970s and 1980s with contributions from multi-factor productivity gains in the paper and metal industries dominating. In the 1990s productivity growth was much more concentrated to the electronic industry. The level of labour productivity in Finnish manufacturing matched that of the US by the end of the second millennium. Labour costs and unit labour costs remained at only three quarters of the US level, although real hourly compensation increased steadily. After 1995 the manufacturing industry constituted a quarter of the Finnish economy but contributed a third of overall economic growth.
Productivity in the Finnish Manufacturing Industry 1975–2003
Productivity in the Finnish Manufacturing Industry 1975–2003
Palkansaajien tutkimuslaitos
Market economies are in a state of continuous turbulence. Each year, on the one hand, many businesses expand (and succeed), while, on the other hand, many others contract (and fail). Joseph A. Schumpeter (1942) called this process by the pithy expression “creative destruction”. The view that recessions revitalize the economy was indeed prominent in pre-Keynesian economics (see, for example, De Long 1990). It is fair to say that the reallocation and the reorganisation of resources culminates in the function of labour markets, where the reallocation of resources takes the form of gross job flows.
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Labour productivity grew on average at the rapid 5 per cent annual rate in the Finnish manufacturing industry from 1975 to 2003. The labour productivity growth was broad-based in the 1970s and 1980s with contributions from multi-factor productivity gains in the paper and metal industries dominating. In the 1990s productivity growth was much more concentrated to the electronic industry. The level of labour productivity in Finnish manufacturing matched that of the US by the end of the second millennium. Labour costs and unit labour costs remained at only three quarters of the US level, although real hourly compensation increased steadily. After 1995 the manufacturing industry constituted a quarter of the Finnish economy but contributed a third of overall economic growth.
Productivity in the Finnish Manufacturing Industry 1975–2003
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Palkansaajien tutkimuslaitos
Market economies are in a state of continuous turbulence. Each year, on the one hand, many businesses expand (and succeed), while, on the other hand, many others contract (and fail). Joseph A. Schumpeter (1942) called this process by the pithy expression “creative destruction”. The view that recessions revitalize the economy was indeed prominent in pre-Keynesian economics (see, for example, De Long 1990). It is fair to say that the reallocation and the reorganisation of resources culminates in the function of labour markets, where the reallocation of resources takes the form of gross job flows.
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