Labor Productivity Calculator

Enter the total value of the goods produced and the total labor hours put into producing those goods to determine the labor productivity.

Labor Productivity Formula

The following equation is used to calculate a labor productivity.


  • Where LP is the labor productivity
  • GDP is the value of the goods produced. When analyzing a country’s labor productivity this is the gross domestic product
  • LH is the total labor hours that led to the product of the goods.

Labor Productivity Definition

A labor productivity is a measure of the our efficiency or amount of value a specific segment can produce with a certain number of labor hours.

Labor Productivity Example

How to calculate labor productivity?

  1. First, determine the value of goods produce.

    Measure the total value of all goods produced.

  2. Next, determine the labor hours.

    Measure the total labor hours required to produce those goods.

  3. Finally, calculate the labor productivity.

    Calculate the labor productivity using the formula above.


What is labor productivity?

Labor productivity is a measure of the output of a specific segment with respect to how much labor was put in that directly led to the production of those goods and services. In other words the amount of value per hour produced.

How is labor productivity increased?

Labor productivity is increased through the reduction of labor hours while keeping the output the same.

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