Investing in capital is one way to do it: with more machinery and equipment, workers can produce more. Strategic investments can lead to innovation and technological progress that make machines and processes more efficient. Better organization can also play an important role. Firms can use the pool of workers more effectively, and workers and managers can improve their performance through education and training.
And, as long as it is done well, this is as it should be. 4  BIS central bankers’ speeches