How can the U.S. be ranked #1 on this indicator, given the current economic crisis?
The U.S. was the top performer in 2008—the only country to receive an “A” grade. This may be puzzling given the headlines of economic crisis in the United States. The key to understanding how the U.S. can be simultaneously experiencing slower GDP growth and a rise in labour productivity is to understand how productivity is measured. Productivity is measured by dividing GDP by hours worked. Hours worked declined in the U.S. in 2008, undoubtedly because of large job losses.
