1. What is Labour Productivity?

Labour productivity measures the economic output per hour of work. It's a key indicator of economic efficiency and standard of living, calculated by dividing total economic output (GDP) by total hours worked.

2. How Does the Calculator Work?

The calculator uses the labour productivity formula:

Where:

• \( GDP \) — Gross Domestic Product in dollars
• \( Hours\ Worked \) — Total hours worked by labor force

Explanation: This formula calculates how much economic value is produced per hour of work, indicating the efficiency of labor utilization in an economy.

3. Importance of Productivity Calculation

Details: Labour productivity is crucial for understanding economic growth, competitiveness, and living standards. Higher productivity means more output with the same amount of labor input, leading to higher wages and better economic conditions.

4. Using the Calculator

Tips: Enter GDP in dollars and total hours worked. Both values must be positive numbers. The calculator will compute productivity in dollars per hour.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good labour productivity?
A: Productivity levels vary by industry and country. Generally, higher values indicate better efficiency. Comparing to industry averages or historical trends provides meaningful context.

Q2: How does productivity affect wages?
A: Higher productivity typically leads to higher wages as workers generate more value per hour. Productivity growth is a key driver of rising living standards.

Q3: What factors influence labour productivity?
A: Technology, education, capital investment, infrastructure, management practices, and economic policies all significantly impact productivity levels.

Q4: How often should productivity be measured?
A: Productivity is typically measured quarterly or annually for economic analysis, but can be calculated for any period where both GDP and hours worked data are available.

Q5: Can this calculator be used for individual businesses?
A: Yes, the same formula applies to individual companies by using company revenue instead of GDP and company labor hours instead of national hours worked.