Cambridge International as and a level Economics Ebook

Labour productivity
Labour productivity
refers to the quantity of goods and 
ser vices that a worker is able to produce in a given period 
of time. It is usually measured in terms of output per 
worker hour.
An increase in labour productivity will increase an 
economy’s productive potential. Labour productivity 
may increase as a result of improvements in education 
and training, greater experience, being able to work with 
more capital equipment and being able to work with 
technologically advanced equipment.
Labour productivity: 
output per worker hour.
KEY TERM
TOP TIP
Students sometimes confuse productivity and 
production. An economy’s production may increase as a 
result of more people being employed, while productivity 
may fall. A rise in unemployment may reduce production 
while increasing productivity as it is likely that it will be 
the least eff icient workers who will lose their jobs.
Country
Total 
population size 
(millions)
Size of working 
age population 
(millions)
Working age 
population as a % of 
total population
Size of the 
labour force 
(millions)
Labour force as a % 
of the working age 
population
Argentina
41
25
60.4
17
68.0
Bangladesh
165
104
78.6
79
76.0
Egypt
85
51
60.4
28
54.9
India
1,215
750
61.7
487
64.9
Italy
60
35
59.1
26
74.3
Nigeria
160
86
53.7
52
60.5
Pakistan
185
106
57.2
60
56.7
Russia
141
94
66.9
75
79.8
South Africa
51
32
62.4
19
59.4
USA
320
197
61.6
155
78.6