Labor Productivity

Labor productivity measures the volume of goods and services a group of workers produces in a given amount of time. The Organisation for Economic Co-operation and Development defines it as a ratio between the volume of output, typically measured as gross domestic product or gross value added, and the volume of labor input, which can be measured in hours worked, jobs or total employment. The measure is used by firms, industries and whole economies to gauge efficiency and performance, and it is distinct from an individual worker's own output because it reflects the collective productivity of a workforce rather than personal performance.