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Journal section "Labor economics"

Problems of Increasing Labor Productivity in the Economy of the Region

Polina S.V.

1 (36), 2017

Polina S.V. Problems of Increasing Labor Productivity in the Economy of the Region. Territorial development issues, 2017, no. 1 (36). URL: http://vtr.isert-ran.ru/article/2133?_lang=en

Abstract   |   Authors   |   References
Labor productivity is one of the drivers of economic competitiveness of a separate enterprise, region and country as a whole; due to this fact, the issue concerning the increase of its level can be considered as one of the main ones. Moreover, this issue implies the increase in the efficiency of workers by increasing the volume of production output while maintaining the level and/or reducing costs. The article presents the dynamics of labor productivity in Russia and in the Vologda Oblast, which shows low growth rates. The author highlights the factors that constrain its growth and gives their classification. Based on the results of surveys conducted by the Institute of Socio-Economic Development of Territories of the Russian Academy of Sciences within the scientific research work “Monitoring of the functioning and development of industry in the Vologda Oblast”, several issues that have a negative impact on the level of productivity were considered. They include the administrative barriers, obsolete equipment and production technology, depreciation of fixed assets, and unskilled labor. These problems indicate that the process of increasing the level of the indicator under consideration is multi-faceted, and it requires good management; and not only employers but also authorities should be management subjects. Employers must cooperate with employees to achieve the goals. By paying due attention to the problems of improving productivity, mentioned in the article, the subject of management gets the opportunity to increase it, which in turn will lead to the growth of competitiveness of an enterprise, region and the economy as a whole. Undoubtedly, to eliminate these causes, it will require time and financial costs, but the result will eventually lead to better profits. The article also points out the main ways to increase labor productivity relating to both the state and the employer

Keywords

region, labor productivity, competitiveness, problems of increase

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