What is the primary factor contributing to increased labor productivity?

The primary factor contributing to increased labor productivity is advanced technology. When new technologies are developed and implemented, they can enhance the efficiency and effectiveness of the labor workforce. For instance, automation and sophisticated manufacturing processes can allow workers to produce more goods or provide more services in the same amount of time. This technological advancement can also facilitate better communication, streamline processes, and provide tools that improve the quality of work.

While higher wages can motivate workers and potentially lead to better performance, they do not directly increase the capacity for production in the same way that new technology does. An increased workforce can help to meet demand, but without improvements in skills or technology, simply having more workers doesn't always lead to higher productivity per worker. Reduced working hours might lead to better work-life balance but may not inherently improve productivity unless paired with improved practices or technologies. Thus, advanced technology remains the most significant driver of productivity growth in the labor market.