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Labour productivity

Measuring labour productivity is crucial for a business to evaluate its efficiency and identify areas for improvement. Here are a few ways to measure labour productivity:

  • Output per hour: This is the most common method and involves dividing the total output of a company by the total number of hours worked by all employees.
  • Output per worker: This method compares the total output of the company to the number of employees.
  • Output per labour cost: This method compares the total output to the total labor cost, including wages, benefits, and payroll taxes.
  • Total factor productivity: This method takes into account all inputs, including labor, capital, and raw materials, and compares them to the output. This is a more comprehensive measure of productivity.

The output produced per employee over a given period of time.

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