Definition
- Labour productivity
- Labour productivity is output per unit of labour input, measured either as output per worker or as output per hour worked.
- Not to be confused with: Unit labour cost
- Unit labour cost is the total cost of the labour involved in producing one unit of output.
Test yourself
What is the difference between labour productivity and unit labour cost?
Labour productivity is output per unit of labour; unit labour cost is the cost of labour per unit of output.
Learn it properly: the module
Also in: Reading the macroeconomic indicators