ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -To measure labor productivity we prefer to compare the number of hours worked to the output produced during that time. Some countries, including the United States, collect data on hours worked, making it possible to measure output per hour worked.

Detailed explanation-2: -Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers.

Detailed explanation-3: -You can measure employee productivity with the labor productivity equation: total output / total input. Let’s say your company generated $80, 000 worth of goods or services (output) utilizing 1, 500 labor hours (input). To calculate your company’s labor productivity, you would divide 80, 000 by 1, 500, which equals 53.

Detailed explanation-4: -Labour productivity is the measure of how much output is produced per unit of labour input, for instance, per worker. Higher productivity means that a business produces more output for each worker it employs. Productivity is important because it is a key determinant of living standards in the long term.

Detailed explanation-5: -The most commonly cited measures are output per worker and output per hour-measures of labor productivity. One cannot have sustained growth in output per person-the most general measure of a country’s material standard of living-without sustained growth in output per worker.