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