Introduction.Improvement of competitive positions of Russian economy is impossible without an increase in labour productivity. A productivity development at the level of country, region, cluster, enterprise, manufacture or section is meant to be an increase in efficiency of production factors utilisation, or resources being used. Theoretical analysis. The article is devoted to analysis of public labour efficiency specifics in Russia. The essence and forming factors of labour efficiency were demonstrated at macrolevel. Research approach. In the research, economics and statistics approaches, in particular methods of time-series data research, factor, correlation and regression analysis, were utilised. Empirical results. Labour productivity dynamics in regions of Privolzhsky Federal District between 2005 and 2012 was studied. As exemplified in Privolzhsky Federal District, particular factors impact on formation and dynamics of labour efficiency was found. Conclusions. The calculations showed that the increase in average labour efficiency between 2005 and 2012 was caused by improvement of labour efficiency in each particular region. The essential regional differentiation in terms of labour productivity between 2005 and 2012 was shown. An attenuation of correlation between labour efficiency in regions of Privolzhsky Federal District and public salary was found. Necessity of correlation enhancement between these factors as a matter of changing over to an innovative way of regional and country development was proved.