II: THE DECLINE OF MAN-HOURS
In any given field of production whether of goods or of services, there is a relationship between:
the number of units produced in a given time,
the number of man-hours of human effort required to produce a single unit,
the number of hours worked per man in that time,
the number of men employed.In any given field of production let:
be the number of units produced per year,
be the number of man-hours required to produce one unit,
be the number of man-hours per year per man,
be the number of men engaged,
be the total number of man-hours required for the entire production.
A man-hour is defined as one man working one hour, regardless of the occupation.
From the above definitions the following relationships are obtained:The total man-hours per year for the entire production are the product of the man-hours per unit andthe total number of units produced in a year,
(1)Also the total number of man-hours per year is equal to the total employees multiplied by theaverage hours per employee per year. Thus,
(2)Equating (1) and (2) together,
(3)Thus we see that the total number of employees at any time in a given industry is directlyproportional to the man-hours per unit and to the rate of production, and is inversely proportional tothe number of hours worked by each employee.If at a given time
is some finite amount, the number of employees,
, may be made as large asone wishes provided the working hours,
, be made short enough.
Variation of Production, Total Man-Hours and Man-Hours per Unit, with Time