Capital to labour ratio

The ratio of a firm's capital assets to its spending on labour.

Capital-to-labour rates stagnate

"Firms have hired workers to produce more to meet the rising demand rather than investing in new capacities.

As a result capital-to-labour ratios and rates of productivity growth have stagnated."

The Treasurer magazine, April 2018, p15 - Kallum Pickering, senior UK economist, Berenberg Bank.

See also

• Assets
• Capital
• Capital deepening
• Capital intensity
• Capital mobility
• Capital structure
• Capitalisation
• Cost of capital
• Credit balance
• Debt capital
• Enterprise
• Equity cost of capital
• Factors of production
• Finance
• Investment bank
• Labour
• Land
• Liabilities
• Regulatory capital
• Share capital
• Working capital