What is Productivity?

What is Productivity?

Productivity is a measure of economic performance that compares the amount of goods and services produced (output) with the amount of inputs used to produce those goods and services.

We can think of productivity as a ratio of output over input.  The more we increase output relative to input, the more productivity increases.

At what levels can productivity be measured?

  • Individual worker’s productivity
  • Company’s productivity
  • Industry or sector productivity
  • Business sector productivity
  • National productivity