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Labour productivity

Concerns the output of a given amount of labour in a given period of time. It is measured by dividing output produced (in terms of volume or value), by the labour input (in terms of number of employees, labour cost or even number of hours worked). Example: 80 production operatives produce 4,000 items a month, output per worker is 50 per month (4,000 / 80). In general, the higher the productivity, the lower the unit cost. Numerous factors affect productivity including training, motivation, maintenance of machinery, planning and organisation (quality of management).

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