What is Labour productivity?
Also known as: output per hour worked
Output per unit of labour input: usually the volume of production or value added per hour worked or per employee. Formula: output ÷ hours worked (or number of employees). At the national level it can be measured as gross domestic product per hour worked. The indicator reflects not only the employee's skill or diligence but also the influence of the equipment, technology and organisational arrangements in use. That is why productivity growth can be a source of wage increases: if more value is created in an hour, the room for distributing it also widens.
Source: OECD: GDP per hour worked; Eurostat glossary: labour productivity