Labor Productivity Calculator

Calculate labor productivity (output per labor hour), productivity index, and unit labor cost to measure workforce efficiency.

Total Output (units, $, or items produced)

Number of Workers

Hours Worked per Worker

Hourly Wage Rate ($) (optional — for unit labor cost)

Baseline / Standard Productivity (units per hour) (optional — for productivity index)

Labor Productivity

Labor Productivity = Total Output ÷ Total Labor Hours

Total Labor Hours = Number of Workers × Hours Worked per Worker

Output per Worker

Output per Worker = Total Output ÷ Number of Workers

Unit Labor Cost (ULC) — requires wage rate:

Total Labor Cost = Hourly Wage Rate × Total Labor Hours

Unit Labor Cost = Total Labor Cost ÷ Total Output

Productivity Index — requires baseline productivity:

Productivity Index (%) = (Labor Productivity ÷ Baseline Productivity) × 100

A value above 100% means the workforce is outperforming the baseline standard.

Labor productivity is measured as partial factor productivity — output relative to labor input only; it does not account for capital, materials, or technology inputs.
Output can be expressed in any consistent unit (physical units, revenue dollars, items, etc.) as long as it is uniform across the calculation.
All workers are assumed to work the same number of hours per period. If hours differ, use total actual hours worked across all workers instead.
Unit Labor Cost (ULC) assumes a single blended hourly wage rate. For mixed workforces, use the weighted average wage.
The Productivity Index compares current productivity against a historical, industry, or target baseline.
Formula reference: U.S. Bureau of Labor Statistics (BLS) — Productivity & Costs methodology; OECD Manual on Productivity Measurement (2001).
Efficiency rating thresholds (Low / Moderate / High / Very High) are illustrative and should be calibrated to your specific industry context.

In the network