The second quarter 2008 edition of the Virginia Economic Trends has been released. Both print and electronic versions of the Virginia Economic Trends can be purchased through this website. The feature story in this issue, "The Productivity Difference," is sponsored by the T3 Technologies. An excerpt follows:

From 1998 through 2006, Virginia averaged an annualized pace of 3.9% gross domestic product by state (GDP). This growth rate was above the 3.0% average compared to the rest of the states and ranked Virginia 8th overall. During this period, Virginia GDP growth was as high as 5.1% in 1998 and as low as 0.6% in 2002 following the last recession.

Virginia’s above-average growth in GDP is not simply attributable to growth in labor supply, but also to productivity gains. Since 1978, output per worker grew faster in Virginia than in the nation. In 1978, output per worker in Virginia was about 4% lower than in the nation. By 2006, however, this turned around with output per worker in Virginia 4% higher than in the nation. Worker output in Virginia averaged 1.7% annualized growth over this period compared to 1.4% in the nation.

The faster productivity growth in Virginia is good news for workers and owners of businesses. Efficiencies often lead to increased profits which generally benefit workers in terms of higher wages as well as business owners. As a result, Virginian’s can enjoy an increasing standard of living.