produttivity

Productivity, often called produttività in Italian, refers to the efficiency with which inputs are transformed into outputs. It is a broad concept used in economics, business, and policy to assess how effectively resources such as labor, capital, and energy are utilized to produce goods and services.

There are several related measures. Labor productivity measures output per worker or per hour worked. Total factor productivity (TFP) accounts for the portion of output not explained by counting inputs, reflecting factors such as technology and organizational efficiency. Multifactor productivity extends this idea to multiple inputs. National statistics often report GDP per hour worked as a common proxy for labor productivity, while capital productivity considers output per unit of capital input.

Measurement relies on data from national accounts, firm surveys, and industry statistics. Productivity figures are sensitive to price changes, measurement methods, and the time period analyzed. Comparisons across industries or countries require careful adjustment for differences in quality, inputs, and work practices.

Key drivers of productivity include technological progress, human capital and skills, organizational practices, management quality, capital deepening (more or better equipment), and energy or resource efficiency. External factors such as regulations, infrastructure, and market competition also play significant roles. Productivity can be affected by both short-term shocks and long-run structural changes.

Strategies to improve productivity commonly involve process optimization, automation and digitization, workforce training, better scheduling and project management, and reforms that enhance incentives and collaboration. While higher productivity tends to raise living standards, it should be pursued alongside considerations of quality, sustainability, and worker well-being.