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Labor productivity
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Economics Tasks on the Topics: Calculating Labor Productivity and Labor Intensity

Note: The problems is taken from the forum without changes.

In this lesson:

  1. Increase in labor productivity based on percentage indicators
  2. Change in percentage labor productivity
  3. Increase in labor productivity based on change in labor intensity
  4. Change in productivity with change in production volume
  5. Change in productivity with decrease in labor intensity and number of personnel
  6. Change in the number and volume of production
  7. Determine labor productivity for commercial products
  8. Change in labor productivity as a result of change in the number and output
  9. Change in labor productivity as a result of change in fulfillment of production standards
  10. Change in labor productivity with decrease in labor intensity of the product
  11. Change in labor intensity with change in labor productivity
  12. Calculations with change in productivity growth and labor intensity simultaneously
  13. Determine the decrease in labor intensity due to increase in labor productivity
  14. Increase in labor productivity due to several measures
  15. Determine the level of labor productivity based on production indicators

Problem 1. Increase in Labor Productivity Based on Percentage Indicators

Given:

  • Total number of workers at the enterprise: 3650
  • Number of workers whose productivity increased: 100
  • Increase in productivity for these 100 workers: 2.5%

Solution:

  1. Calculate the number of workers whose productivity did not change: [ 3650 - 100 = 3550 ]

  2. Determine the new productivity level for the entire workforce: 
    ( 3550 * 100% + 100 *102,5% ) / 3650 = 100,07% (More precisely, 100.0684932%)

  3. Calculate the increase in labor productivity: 100,07% - 100% = 0,07%

Answer: The increase in labor productivity was 0.07%.



Problem 2. Change in Percentage Labor Productivity

Given:

  • Group 1 of activities: +2%
  • Group 2 of activities: -4%
  • Group 3 of activities: -12.5%

Solution:

  1. Calculate the indices of labor productivity for each group of activities: 
    IGroup 1 = (100 + 2) / 100 = 1.02 ;  
    IGroup 2 = ( 100 - 4 ) / 100 = 0.96 ; 
    IGroup 3 = ( 100 - 12.5 ) / 100 = 0.875 ;

  2. Determine the overall change in labor productivity: To find the overall change, multiply the indices:
    Itotal = 1.02 x 0.96 x 0.875 ≈ 0.8574

  3. Convert the index back to a percentage change: ( Itotal  - 1) x 100% = (0.8574 - 1) x 100% ≈ -14.26% 

Answer: The overall change in labor productivity is approximately -14.26%.






 Labor productivity and headcount | Описание курса