What is Labor Productivity? How to Measure Labor Productivity?

Definition of Labor Productivity

We know that productivity is the ratio of output and input. By the same concept, labor productivity is the ratio of labor output and input.

So, Labor Productivity = Labor Output/Labor Input

Here, Labor output is the number of goods produced by the worker (labor) and labor input is the number of workers produced those goods.

How to Measure Labor Productivity?

Labor productivity is measured by dividing the total labor output and labor input. Let’s see an example to be more understanding.

Example:

Suppose, in a garments sewing line total output is 1200 pieces shirt in a day. Total of 41 worker worked in this line. Now, what is labor productivity?

We know that,

Labor Productivity = Labor Output/Labor Input

Here, Labor Output = Number of output = 1200 pieces shirt

          Labor Output = Number of worker = 41

So, Labor Productivity = 1200/41 = 29.27 pieces per labor per day

If more pieces are produced by the same or less number of labor, then the labor productivity will higher and vice versa.

Also Read:

What is productivity? Howto measure productivity?

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