What is partial factor productivity?

Partial factor productivity measures the efficiency of a single input factor in the production process, typically expressed as the ratio of output to a specific input, such as labor or capital. For example, labor productivity is calculated by dividing total output by the total hours worked. This metric helps businesses assess how effectively they are utilizing individual resources, enabling them to identify areas for improvement. However, it does not provide a complete picture of overall productivity or efficiency since it isolates only one factor at a time.