Define efficiency of labour

Economic Applications (10)

Define efficiency of labour. Briefly explain the impact of technology on efficiency of labour.


Efficiency of labour refers to productive capacity of a worker. It is measured in terms of:

  1. Quantity of output produced by a worker

  2. The quality of output

  3. Time taken to produce it

Technology plays a vital role in promoting the quality of labour. Technical education and advanced technology has a great impact on skill development of workers. This also leads to greater possibilities of inventions and innovation.