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Quality-adjusted labour input measure (Experimental) - Office for - ons gov

Quality-adjusted labour input measure (Experimental) - Office for - ons gov 2025

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The document presents experimental estimates of a quality-adjusted labour input measure (QALI) developed by the Office for National Statistics (ONS) to enhance productivity calculations. It aims to account for changes in skill composition within the workforce, contrasting with traditional measures that only consider hours worked or number of jobs. The article outlines the methodology, results, and ongoing challenges in refining QALI, emphasizing its potential utility for both productivity analysis and labour market statistics.

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What is the quality adjusted labour input?

Quality-adjusted labour input (QALI) estimates the growth of hours worked (labour input) taking into account the quality of the workforce based on experience and skills. The hours worked by high productive workers are weighted higher than the hours worked by low productive workers.

How to calculate labour input?

Labour input can be measured as either the number of employed persons or the number of paid hours worked by employees. Hours worked measures are typically preferred because they capture changes in standard working hours, leave, overtime and flexible work arrangements.

What is the meaning of quality of labor?

Formally, we have defined labor quality as equal to labor input. divided by man-hours, when all are expressed as index numbers. As a. first approximation of relative change in labor input, we use relative. change in labor compensation.

How is labour productivity measured in the UK?

Labour productivity statistics are derived by dividing output, as measured by GVA, by measures of labour input, namely: hours worked. number of workers. number of jobs.

What does labor input mean?

Labor input is measured as either the number of workers employed or the number of hours they worked during a given time period, say a year. Most countries collect data on the number of workers, and can calculate labor productivity as output per worker. Hours worked account for differences between workers (full-time vs.