Average Productivity of Labor

Average Productivity of Labor refers to the amount of goods or services produced per worker over a specific period, typically measured as output per hour worked. It reflects how efficiently labor is utilized in the production process. Higher average productivity indicates that workers are creating more output with the same amount of labor, which can result from better tools, training, or technological advancements. This metric is important for understanding economic performance and can influence wages, business profits, and overall economic growth. Essentially, it illustrates the effectiveness of the workforce in generating value.