Labor Utilization Theory

Labor Utilization Theory examines how effectively labor resources are used in an economy or organization. It focuses on the relationship between the amount of work available and the number of workers employed. When labor is utilized efficiently, productivity increases, leading to higher output and economic growth. Conversely, underutilization can result in wasted potential and economic stagnation. The theory emphasizes the importance of matching skills with job requirements and optimizing workforce management to achieve better results and enhance overall economic health.