How to calculate productivity of labor

Written by soren bagley
  • Share
  • Tweet
  • Share
  • Pin
  • Email
How to calculate productivity of labor
Labor productivity measures economic health. (economy image by Madera from Fotolia.com)

Labor productivity is an economic measurement used to determine the health of a country's economy. Specifically, it describes the amount of output that is generated per worker each hour. The more output produced per hour of work, the greater the level of productivity. Productivity increases are generally accepted as a sign that the economy is expanding. Technological advances and increased worker efficiency are the two primary sources of productivity improvements.

Skill level:
Easy

Other People Are Reading

Instructions

  1. 1

    Determine the total worker output within a given period of time. The total output can be expressed in terms of monetary value, or it can be expressed in terms of units produced.

  2. 2

    Determine the total number of man hours that were dedicated to production within the same period of time. The total number of man hours should include not only the hours dedicated to the manufacturing process but the management and oversight process as well.

  3. 3

    Divide the total output by the total number of man hours. The result of the division will be an expression of labour productivity. For example, if a company produced 10,000 units within a one-year period and the company workforce worked 5,000 total hours within this same year, you would divide 10,000 by 5,000, resulting in a productivity rate of 2 units per hour.

Don't Miss

Filter:
  • All types
  • Articles
  • Slideshows
  • Videos
Sort:
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the eHow.co.uk site, you consent to the use of cookies. For more information, please see our Cookie policy.