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How is productivity related to the unemployment rate?

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How is productivity related to the unemployment rate?

Labor productivity:

Labor productivity is the measure of hourly output produced by a worker in a countries economy. Labor productivity growth occurs when workers produce more goods and services for a given number of worked hours. As a result, if it is increased, it leads to high profit and more chances for investment in a firm.

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Wages offered by a firm to the employee directly relates to their productivity. Unemployment shows unused potentially productive human resources. When...

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Labor Productivity: Definition & Equation

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Chapter 17 / Lesson 16
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Learn about labor productivity. Understand how to calculate labor productivity, examine the labor productivity formulas, and see how to improve labor productivity.


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