Essay On Labor Productivity In Construction Industry

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Register to read the introduction… 2000). While other extreme task’s like hand trenching served as an example of very little or no technological change. An observation was made that not all sampled activities reflected increase in output and all tasks reflected decrease in unit labor cost (Allmon et al. 2000).

With these observations, it was concluded that the productivity labor productivity decreased during 1970’s but increased between 1980’s and 1990’s due to depressed real wages and also due to technological advancements (Allmon et al. 2000). Contrary to the belief that higher levels of management had greater levels of productivity, it was found in this study while analyzing a particular firm that levels of management was not a leading contributor of labor productivity increase overtime.

Relevance to the
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2000). However, the macroeconomic data suggested that the labor productivity data has substantially improved in all economic sectors of the United States except the construction industry (Rojas and Aramvareekul, 2003). Therefore, the focus of this study was to critically examine the macroeconomic labor productivity data in the U.S from 1979 to 1998 to test its validity (Rojas and Aramvareekul, 2003).

Objectives of the research:
The main objective of this study was to;
1) Determine if the macroeconomic labor productivity data for the years 1979 - 1998 is reliable in or not (Rojas and Aramvareekul, 2003).
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According to the formula labor productivity for an industry ‘i’ could be calculated by dividing the Gross Product Originating (GPO) by that particular industry by the average number of employees worked for that industry in a month ‘j’ and multiplied it by average number of hours worked for that industry in month ‘j’. The construction industry was then divided into two groups of residential and commercial construction and non-residential and heavy construction (Rojas and Aramvareekul, 2003). An output mix was generated, which represented the percentage of participation of a particular sector in the industry (Rojas and Aramvareekul, 2003). The labor productivity of the entire industry was designed to be the average of the labor productivity for each sector. The effect of different ratios of groups was observed with the different output mix (Rojas and Aramvareekul, 2003).

The study uncovered many problems because of deficiencies in data which consequently effected the interpretation of the results which lead to the conclusion that labor productivity trends for the time period could not be determined (Rojas and Aramvareekul, 2003).

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