Labor productivity

"Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.' - King Solomon (Proverbs 22:29)

According to the U.S. Labor Bureau of Statistics, "Labor productivity is a measure of economic performance that compares the amount of output with the amount of labor used to produce that output."

Investopedia says about the importance of labor productivity to an economy, "Labor productivity is largely driven by investment in capital, technological progress, and human capital development. Labor productivity is directly linked to improved standards of living in the form of higher consumption. As an economy's labor productivity grows, it produces more goods and services for the same amount of relative work. This increase in output makes it possible to consume more of the goods and services for an increasingly reasonable price."

According to Yahoo Finance: "Efficiency in production, also coined as productivity, is one of the major driving forces behind economic resilience in a country."

Investopedia indicates: "Education tends to raise productivity and creativity, as well as stimulate entrepreneurship and technological breakthroughs. All of these factors lead to greater output and economic growth."

The Organisation for Economic Co-operation and Development states concerning labor productivity: "Labour productivity is a key precondition for high growth of output, employment and wages and central to long-term growth in living standards."

In an economy, one of the causes of wage raises is an increase in marginal labor productivity rates.

How an economy or company/organization can improve its labor productivity

Many Latin American middle-income countries haven't become high-income countries and have half the labor productivity of countries that are technological leaders.

See: Middle-income trap

• Labor Productivity: What It Is, How to Calculate & Improve It, Investopedia
• What Determines Labor Productivity?, Investopedia
• How to Measure — and Improve — Labor Productivity, Wharton School of the University of Pennsylvania.

Happiness and labor productivity

See also: Happiness and Happiness and health

Fast Company's article Research shows happiness is the new performance indicator. This is how managers can support it indicates: "The Saïd Business School study Does Happiness Improve Worker Productivity? found that happiness can have a significant impact on productivity. Results showed that happier workers were 12% more productive than their unhappy counterparts." (See also: Happiness and Productivity, Journal of Labor Economics, Volume 33, Number 4).

Labor productivity of the United States

See also: Labor productivity rate of the United States

In terms of the quality of its labor, the U.S. labor market is in line with those of other developed countries.

United States in comparison to other countries in the world as far as labor productivity

Investopedia says about the importance of labor productivity to an economy, "Labor productivity is largely driven by investment in capital, technological progress, and human capital development. Labor productivity is directly linked to improved standards of living in the form of higher consumption."

According the Yahoo Finance: "According to Yahoo Finance: "Efficiency in production, also coined as productivity, is one of the major driving forces behind economic resilience in a country... The United States has one of the strongest economies in the world. The country hosts some of the largest companies in the world, which contributes to the high GDP per capita in the country."

As can be seen in the map above, the USA has one of the highest labor productivity rates in the world.

See also

• Productivity

External links

• Increased productivity creates economic growth, Donor Committee for Enterprise Development website

Video:

• Labour Productivity Explained