April 13, 2006
In today’s nationalized and globalized economy having a competitively priced labor is important. But Mike Walden says this doesn’t always mean having the cheapest labor.
“The way a business looks at labor costs is they look at what they are getting out from that labor -- the output produced -- compared to what they have to pay that worker,” says Dr. Walden, a North Carolina Cooperative Extension economist.
“So for example, if a worker is twice as expensive but produces three times more, that worker is actually a bargain.
“And when we look at this productivity compared to cost for our workers, North Carolina actually looks very good compared to the nation. Our average worker is about 10 percent more productive than the national worker.
“In the last 25 years, output per dollar of pay has increased 19 percent for North Carolina workers compared to 8 percent for national workers.”
Posted by deeshore at April 13, 2006 08:00 AM