Question

Labor productivity on the Cleveland Tools Inc. assembly line was 33 units per hour in 2019. In 2020, labor productivity was 35 units per hour.

What was the productivity growth from 2019 to 2020?

Answer 1

Productivity Growth = 6.1%

Step-by-step explanation:

Productivity Growth = Current Productivity - Previous Productivity/ Previous Productivity

Productivity Growth = 35-33/33=2/33= 0.0606 or 0.061*100= 6.1%

Productivity Ratio = Output/ Input

Labor Productivity= No of Units/ No of Employees

A preferable approach to productivity measurement is to record multiple physical measures that capture the most important determinants of a company's productivity.