According to the U.S. Bureau of Labor Statistics, labor productivity in manufacturing increased by 6.2 percent in the United States in 1999, the latest year for which data is available. That increase was higher than nine other industrialized countries, including Japan, Germany and Canada. In fact, one country, Norway, showed no increase in productivity.
The U.S. Bureau of Labor Statistics defines productivity as manufacturing output per hour of labor. An increase in productivity represents a decrease in the amount of labor used to produce a unit of output. Thus, an increase in productivity can offset an increase in compensation per hour.