A-Z Popular Blog Productivity Search »
Related Guides

3 Examples of Labor Productivity

 , updated on
Labor productivity is the value of goods produced in an hour of work. It can be calculated for a nation, industry, firm, team or individual using the productivity formula. The following are illustrative examples of labor productivity calculations.


Labor productivity can be calculated for a nation using GDP and total hours worked.
labor productivity = GDP / total hours worked
For example, a nation with GDP per worker of $100,000 and average hours worked of 1550:
labor productivity = $100,000 / 1550 = $64.52 / hour

Growth Rate

National labour productivity is often represented as a year-over-year growth rate using the formula:
labour productivity growth rate = ((current year productivity / previous year productivity) -1) × 100
For example, a nation with productivity of $64.52 this year and $63.70 last year:
labour productivity growth rate = ((64.54 / 63.70) -1) × 100 = 1.32%
It is common to discuss the productivity of nations in terms of the growth rate. For example, when people say that productivity is falling, they often mean that the growth rate of productivity is falling.

Company Productivity

It is possible to calculate labor productivity for a company or a business process such as a production line using the productivity formula:
labor productivity = value of output / total hours worked
In the context of a firm, value of output is usually gross revenue. For example, a firm with revenue of $9 million dollars and 5 employees who work a total of 9750 hours:
labor productivity = $9,000,000 / 9750 = $923 / hour
Labor productivity doesn't consider business costs such as inventory, equipment, materials, parts and marketing that are required to generate revenue. As such, labour productivity should not be confused with an hourly wage or profit.
Overview: Labor Productivity
The value of goods produced in an hour of work.
Also Known As
Labour Productivity
Productivity Rate
Related Concepts


This is the complete list of articles we have written about productivity.
Attention Span
Busy Work
Division Of Labor
Employee Productivity
Flow Theory
Labor Intensive
Low Productivity
Productivity Analysis
Productivity Goals
Productivity Mgmt
Routine Work
Social Loafing
Time Boxing
Work Attitude
Work Decisions
Work Ethic
More ...
If you enjoyed this page, please consider bookmarking Simplicable.


The basics of productivity.


An overview of flow.

Efficiency vs Productivity

The difference between efficiency and productivity.

Knowledge Work

A definition of knowledge work with examples.


An overview of bottleneck with examples.

Productivity Formula

How to calculate productivity with 3 examples.

Productivity Improvement

The definition of productivity improvement with examples.

Productivity Rate

The formula for productivity rate with calculation examples.


The definition of toil with examples.

Work Ethic

The definition of work ethic with examples.


An reasonably comprehensive list of metrics.

Marketing Metrics

A list of common ways to measure marketing results.

IT Metrics

A list of commonly used IT metrics.

Innovation Metrics

How to measure innovation including early stage, late stage and overall program metrics.

Metrics vs Measurements

The difference between a metric and a measurement.

Best In Class

A definition of best in class with examples.

Data-Driven Business

The common types of data-driven business.

Cycle Time

A definition of cycle time with examples.

Cost Effectiveness

A definition of cost effectiveness with example calculations.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map