##### Asked by: Lavone Lastaga

asked in category: General Last Updated: 11th April, 2020# How do you calculate labor productivity growth rate?

**labor**is the most common input factor, you also could use variables such as equipment, raw materials and money to

**calculate productivity growth rates**. Generally, the formula for

**calculating**the

**productivity growth rate**is output divided by input.

Furthermore, how do you calculate labor productivity growth?

You can **measure** employee **productivity** with the **labor productivity equation**: total output / total input. Let's say your company generated $80,000 worth of goods or services (output) utilizing 1,500 **labor** hours (input). To **calculate** your company's **labor productivity**, you would divide 80,000 by 1,500, which equals 53.

Also, how do you calculate percentage change in labor productivity? Divide the **productivity** improvement rate by the old **productivity** rate and multiply by 100 (**Productivity** Improvement / **Productivity** 1 x 100 = % **Increase**)

In respect to this, what is a good labor productivity growth rate?

**Labor productivity growth** averaged 0.7% over this period, accounting for just 27% percent **of** real GDP **growth**. **Labor productivity growth** amounts to **the average growth of** how much **goods** and services each individual can consume and, thus, is the driving force behind **increases in** the standard **of** living.

How do you calculate unit productivity increase?

**Calculate** your current **productivity**. Do this by dividing the number of **units** completed by the number of hours spent on them. For example, if it takes two hours to complete the production of three **units**, then 1.5 **units** are produced per hour. Introduce incentives, such as bonuses for higher **productivity**.