Labor productivity has a significant impact on economic growth, and is measured as the ratio of output and quantity of labor. This paper deals with the measurement of labor productivity and factors and policies that affect labor productivity growth. In addition, it explains the impact that labor productivity has on wages, inflation and employment. Labor productivity affects economic growth because it enables higher quality of production. Economic growth is an increase in the level of output, employment and income compared to the previous period. Therefore, labor productivity is essential for economic growth. The paper deals with the sources and measurement of economic growth and the function of aggregate production. The relationship between actual labor productivity per employee and real GDP per capita growth rate is also analyzed to determine the relationship between two listed variables. The results of the analysis conducted in this paper suggest the existence of positive relationship between labor productivity and economic growth.