What measures the output per worker and indicates the current level of skills and motivation?

• A. Productive efficiency
• B. Labor productivity
• C. Output per worker
• D. Workforce efficiency

Answer: (B)

Labor productivity measures how much output is produced per unit of labor, usually per worker or per hour. It captures how effectively the workforce turns inputs into goods and services, and it reflects the current level of skills, motivation, and how well workers are supported by technology and processes.

If productivity rises, it often signals that workers are more skilled, better trained, or more motivated, or that methods and tools have improved. If it falls, it can indicate the opposite. This makes labor productivity the most direct way to connect output per worker with the underlying capacity and drive of the workforce.

Productive efficiency is about producing at the lowest possible cost with given resources, not specifically about output per worker. Output per worker is a component of labor productivity, but calling it labor productivity emphasizes the broader link to how skilled and motivated the workforce is. Workforce efficiency is a similar idea but less precisely defined as a standard measure.