The formula to calculate the Labor Productivity Ratio (LPR) is:
\[ LPR = \frac{TO}{TLI} \]
Where:
The labor productivity ratio is a measure of the efficiency of labor in producing goods or services. It is calculated by dividing the total output by the total labor input. This ratio is an important metric for businesses and economies as it helps in assessing the productivity and performance of the workforce. A higher labor productivity ratio indicates a more efficient use of labor resources, leading to higher output and potentially greater profitability.
Let's say the total output (TO) is 1,000 units, and the total labor input (TLI) is 50 hours. Using the formula:
\[ LPR = \frac{1,000}{50} = 20 \]
So, the Labor Productivity Ratio (LPR) is 20.