Labor Productivity Calculator
Calculate labor productivity (output per labor hour), productivity index, and unit labor cost to measure workforce efficiency.
Formulas Used
Labor Productivity
Labor Productivity = Total Output ÷ Total Labor Hours
Total Labor Hours = Number of Workers × Hours Worked per Worker
Output per Worker
Output per Worker = Total Output ÷ Number of Workers
Unit Labor Cost (ULC) — requires wage rate:
Total Labor Cost = Hourly Wage Rate × Total Labor Hours
Unit Labor Cost = Total Labor Cost ÷ Total Output
Productivity Index — requires baseline productivity:
Productivity Index (%) = (Labor Productivity ÷ Baseline Productivity) × 100
A value above 100% means the workforce is outperforming the baseline standard.
Assumptions & References
- Labor productivity is measured as partial factor productivity — output relative to labor input only; it does not account for capital, materials, or technology inputs.
- Formula reference: U.S. Bureau of Labor Statistics (BLS) — Productivity & Costs methodology; OECD Manual on Productivity Measurement (2001).