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Efficiency of labour is the ability of labour to increase output without increasing the quantity of labour. Efficient labour will lead to an increase in the number of goods and services produced. An increase in efficiency of labour will result in an increase in output of labour.

Factors Affecting the Efficiency of Labour

  1. Education and Training: The level of training received by a worker will go a long way towards increasing the efficiency of labour.
  2. Efficiency Management: When efficient management is in place in any organization, it will go a long way towards improving the efficiency of labour
  3. Appropriate Incentives: This includes such things as car allowance, overtime, housing scheme, bonuses, etc. All these incentives will bring about efficiency of labour.
  4. Level of Technology: High technology will increase the efficiency of labour
  5. Attractive Wages: When the salary of a worker is attractive it will motivate, boost, or promote the efficiency of the worker.
  6. Promotion: Frequent promotions of workers in any organization can lead to an increase in the efficiency of labour.
  7. Job security: Job security and other forms of security improve the efficiency of labour. If a worker is sure of job continuity and has been insured against industrial accidents, he will definitely put in his best and this will increase productivity.


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