Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at thedesigningfairy.com and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English literature from NYU." data-inline-tooltip="true">Will Kenton
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Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at thedesigningfairy.com and Kapitall Wire and holds a MA in Economics from The New School for Social Research and Doctor of Philosophy in English literature from NYU.

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Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of experience as a business executive. He is a professor of economics and has raised more than $4.5 billion in investment capital.

What Is Productivity?

Productivity, in economics, measures output per unit of input, such as labor, capital, or any other resource. It is often calculated for the economy as a ratio of gross domestic product (GDP) to hours worked.


Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth.

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At the corporate level, productivity is a measure of the efficiency of a company"s production process, it is calculated by measuring the number of units produced relative to employee labor hours or by measuring a company"s net sales relative to employee labor hours.


Productivity, in economics, measures output per unit of input.When productivity fails to grow significantly, it limits potential gains in wages, corporate profits, and living standards.The calculation for productivity is output by a company divided by the units used to generate that output. Auto giant Toyota and online marketplace king Amazon are prime examples of businesses with an impressive level of productivity.Productivity in the workplace refers simply to how much "work" is done over a specific period of time.