The employment - productivity - salary relation, a condition for achieving long - term economic growth

Abstract

The employment-productivity-salary correlation is essential towards setting up conditions for economic growth and lasting social stability. An influence exists from technological changes, current stage of economic development, peculiarities of labour offer, employers – trade-unions interaction, etc. The analysis covers long-term and short-term cycles. In keeping with specificity of development stages, national economy witnesses an interval of productivity growth facilitating maximized employment and a rise in salary too. A lower growth rate indicates difficulties in assimilating new technologies; a higher growth rate generates instability in employing labour. Thus, the exercise of strong pressure is shown to exist on economic and technological structures. Likewise, this is what happens when productivity goes ahead of the separate analyses of the correlations between employment and productivity, on the one hand, and productivity and salary, on the other.