Expected Changes in the Corporate Sector As I mentioned earlier, firms' efforts to raise labor productivity by, for example, making labor-saving investment have spread not only to the manufacturing sector but also to the nonmanufacturing sector. However, even if labor productivity rises, there is no guarantee that the overall productivity of the economy, including capital productivity, will increase.
Let us consider the case where capital, such as robots, substitutes for labor. If this is a mere substitution of one unit of labor with one unit of capital and the value added remains the same, the overall productivity will not change substantially because labor productivity will rise while capital productivity declines.