*Concept:
Labor productivity is an indicator of the useful efficiency of purposeful human activities in the production process.
Labor productivity is determined by the number of products produced in a unit of time or the amount of labor time spent to produce a unit of product.
As Marx wrote: “The increase in the level of production or productivity of labour, we understand in general as a change in the mode of labour, a change which shortens the socially necessary labour-time for the production of a commodity so that a smaller quantity has the power to produce more use-values”.
*The meaning of increasing labor productivity First of all, increasing labor productivity reduces product costs because it reduces wage costs per unit of product. Wages are the price of labor, it is one of the costs that make up the cost of products. Increasing labor productivity means reducing labor costs per unit of product or reducing wage costs per unit of product, leading to a decrease in product costs. Increasing labor productivity allows to reduce the number of employees, thereby saving on the wage fund. High and rapidly increasing labor productivity will create conditions to increase the scale and speed of total social product and national income, allowing to solve the problems of consumption accumulation.
(practical qtns lesson)
