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The productivity formula is a basic measure of the productivity of an economy, industry, organization, team or individual. Productivity is typically used as a measure of labor whereas efficiency is used to measure business processes, machines and automation. The productivity formula is expressed as: Labor productivity is the value that each employed person creates per unit of his or her input. The easiest way to comprehend labor productivity is to imagine a Canadian worker who can make 10 loaves of bread in an hour versus a U.S. worker who in the same hour can make only two loaves of bread.

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