Labour Productivity in Action: Lessons from Amazon UK

Imagine this, it’s 6:00 am at an Amazon fulfilment centre in the UK. The warehouse lights are already blazing, and hundreds of workers are lining up at their stations. The job? Picking, packing, and sending out thousands of parcels that will land on customers’ doorsteps tomorrow morning.

But here’s the real question... how do Amazon’s workers achieve this speed and scale day after day? The answer lies in labour productivity.

Start by watching the explainer video, then dive into the blog to explore what labour productivity really means and how Amazon UK shows it in action.

What is labour productivity?

At its simplest, labour productivity measures how much output one worker produces in a set period of time.

To calculate the labour productivity of a business, you can use the following formula:

total output (per period of time) / average number of employees (per period of time)

Think about a café:

• If a barista makes 60 coffees in a 3-hour shift, that’s 20 coffees per hour.

• If another makes 90 coffees in the same time, their productivity is higher.

  
  

For businesses and whole economies, this calculation matters. More output per worker means:

• Lower costs.

• More goods and services for customers.

• Potentially higher wages and profits.

Amazon and the race for productivity

Now back to that fulfilment centre. Amazon has built its empire on driving productivity to the maximum.

Here’s how:

• Robots whizz through the aisles carrying shelves to workers, so staff don’t waste time walking miles each shift.

• Scanners and software track every item and every worker’s speed in real time.

• Training makes sure every movement is standardised for efficiency.

• The scale is enormous with millions of products handled daily.

The result? Orders are packed and shipped at a speed most rivals can’t match.

The upside

This obsession with productivity has real benefits:

• Customers enjoy low prices and rapid delivery.

• Amazon strengthens its competitive advantage, squeezing out rivals like Argos or John Lewis.

• Shareholders see bigger profits as efficiency rises.

It’s a business model that has reshaped retail in the UK.

The downside

But here’s the twist in the story. Productivity comes at a cost.

• Workers often report feeling intense pressure to meet hourly targets.

• Short breaks and constant monitoring can make the job stressful.

• As automation grows, many fear that robots may eventually replace human roles altogether.

  
  

So while productivity powers Amazon’s success, it sparks tough questions about fairness and sustainability.

Questions for business students to think about

1. A worker packs 240 items in an 8-hour shift. What is their productivity per hour?

2. How does automation improve productivity at Amazon’s fulfilment centres, and what risks might it create for workers?

3. Who benefits more from Amazon’s high productivity and why? (choose from customers, employees, or shareholders).