This article analyzes the mechanisms through which higher labour efficiency in enterprises can increase household income and contribute to poverty reduction. The central argument is that labour efficiency should be understood not as a narrowly technical indicator of output per worker, but as a multidimensional economic process shaped by technology adoption, managerial quality, workforce skills, access to finance, market institutions, and the distribution of productivity gains. In developing and middle-income economies, poverty reduction depends not only on creating more jobs, but on creating more productive jobs that generate stable labour incomes and stronger links between enterprise growth and household welfare.