In Economics, productivity is basically the ratio of how much you can produce (Output), based on the resources you have (Input). In practice, productivity helps define both the mix for raising living standards and the competitiveness of an economy. Both measure in different ways, input includes labor and capital. Economically, the country in which it is located is known determining labor productivity. Labor productivity is an hourly measure of output on a per-worker basis. As more and more work is produced each hour, overall productivity increases which examines a healthy expanding economy. To measure productivity, there are a few steps to follow: First, before you can measure the average production of workers, you will need to select a unit of measurement. Secondly, before calculating productivity, you must first decide on the length of time to use in the calculations. The shorter the time, the easier the calculation will be but the results will be less accurate. Third, determine the amount of output produced in the chosen time period. Fourth, determine how many hours you spend working in the time frame you decide on. Finally, the last step to attempt is to basically determine the worker's estimated productivity. This calculation is done by taking the amount of output produced in the decided time period and dividing it by the number of hours spent working on the project. Production measured in revenues and other components of GDP such as company inventories. To examine trends in labor growth, wage levels and technological improvements, they look sector by sector. In Macroeconomics, labor productivity, i.e. GDP per worker, depends on the dynamics of the two aggregates, i.e. GDP and...... a medium of paper...... company, therefore labor productivity is important for your business because it helps your business businesses find obstacles in the revenue stream and improve profits. If you see in the results that your productivity is decreasing for some reason, when you compare your employees' hourly rates it may tell you that you are paying your employees too much or perhaps that you have too many staff. Rationalization will help an organization save enough capital while maintaining the least number of employees. Failure to streamline will result in large losses and may meet financial obligations. Increasing labor productivity will lead to paying workers less and producing large quantities of products. being an entrepreneur, you can increase your work productivity by providing employees with better technologies and equipment to complete their task more effectively and sufficiently to produce better products.