Biggest decline in US productivity in 74 years

[T. A. Gardner]

Seems people are working longer and producing less than ever...

U.S. worker productivity fell sharply in the second quarter, its biggest annual drop since 1948, even as employers spent more on labor and added more jobs.

The Labor Department on Tuesday said nonfarm productivity, which measures the goods and services produced per hour worked, declined at a 4.6% annualized rate in the second quarter.

It was the second straight quarterly decline and came as growth in unit labor costs, a measure of worker compensation and productivity, accelerated in the second quarter.

https://news.yahoo.com/u-productivit...183309746.html

Seems the economy is tanking and we have the Democrats and Joke to thank for it. FJB!

[archives]

“came as growth in unit labor costs, a measure of worker compensation and productivity, accelerated in the second quarter”

[goat]

Another round of bailouts is in the making.

[Hawkeye10]

The economy is not alright.

[cawacko]

“came as growth in unit labor costs, a measure of worker compensation and productivity, accelerated in the second quarter”

I'm paraphrasing from a WSJ article today but with rising productivity companies can raise wages without having to raise prices and cause inflation. Right now we're paying workers more to produce less. Far from ideal.

[Althea]

Seems people are working longer and producing less than ever...


https://news.yahoo.com/u-productivit...183309746.html

Seems the economy is tanking and we have the Democrats and Joke to thank for it. FJB!

Economy is stronger than ever, and after decades of being squeezed for every drop of productivity for slave wages...productivity is dropping?


That's cute.

[Hawkeye10]

Conclusion
At this point, we have a general understanding of the many factors—at both the economy-wide and industry levels—which may underlie the productivity slowdown since the mid-2000s. However, some questions remain, perhaps the most central one being: Is the U.S. economy now, as some researchers have suggested, in an intermittent lull in between waves of high growth, or, as others contend, in a “new normal” of lower growth that has resulted from fundamentally diminished returns to innovation? The answer is not known at the moment, and only time—and additional data in our time series—will tell us.

At the same time, one thing that we can say for certain about our present situation is that the productivity slowdown of the past decade and a half has left the U.S. economy in a weaker position—yielding a sizable loss of potential output during these years—and perhaps even more importantly, it has also left the economy in a weaker position going forward. This is because the productivity slowdown has resulted in a lower base of output from which to grow onward from here, relative to the more elevated starting position that the economy would instead now have if productivity had continued to grow at the long-term historical trend after 2005.

Thus, it will be important for participants of the U.S. economy to keep an eye on productivity data in coming years, to determine whether the slowdown since 2005 simply represented a periodic variation in trend, which can be explained from recent cyclical and noncyclical factors, as some observers have claimed, or whether it comes to be seen as a continuation of the low-growth economy of the last few decades of the 20th century. BLS productivity data, including labor productivity, multifactor productivity, and capital and labor data, at both the economy-wide and industry levels, will continue to shed light on this issue..

https://www.bls.gov/opub/mlr/2021/ar...l-analysis.htm

[Hawkeye10]

Economy is stronger than ever, and after decades of being squeezed for every drop of productivity for slave wages...productivity is dropping?


That's cute.

Your fantasy life is rich.

[Celticguy]

Seems people are working longer and producing less than ever...

Seems the economy is tanking and we have the Democrats and Joke to thank for it. FJB!

well when 100,00+ of the jobs last month were 2nd and 3rd jobs and another 100,000+ were part time ones in hospitality (summer jobs) and consumer confidence is at all time lows, you can hardly be surprised.

[Hawkeye10]

well when 100,00+ of the jobs last month were 2nd and 3rd jobs and another 100,000+ were part time ones in hospitality (summer jobs) and consumer confidence is at all time lows, you can hardly be surprised.

I suspect that the Big Problem is that there are loads of well paid full of themselves ( I am going to make the world a better place, through force!) white collar corporate types who dont contribute much to the cause. I am expecting huge numbers of them to be put on the street over the next two years.

[Hawkeye10]

Far too many non productive bureaucrats all through the economy...that is the likely problem.

[Guno צְבִי]

I suspect that the Big Problem is that there are loads of well paid full of themselves ( I am going to make the world a better place, through force!) white collar corporate types who dont contribute much to the cause. I am expecting huge numbers of them to be put on the street over the next two years.

And you sit around and drink all day, you produce nothing

[Hawkeye10]

Its not just that the bureaucrats dont produce anything, they are even worse, they get in the way of those who do produce.

[Hawkeye10]

And you sit around and drink all day, you produce nothing

I am retired.

I also smoke bowls of 90% indica/10% kief everyday!

[floridafan]

Seems people are working longer and producing less than ever...


https://news.yahoo.com/u-productivit...183309746.html

Seems the economy is tanking and we have the Democrats and Joke to thank for it. FJB!

How does an economy tank when millions of jobs are being created, when millions of unfilled positions are available?