Productivity up in summer while labor costs fell

[krispos42]

Source: AP via Yahoo

Productivity in summer rose at fastest pace since early 2010 while labor costs fell sharply

By Martin Crutsinger, AP Economics Writer | AP – 8 hours ago

WASHINGTON (AP) -- U.S. workers increased their productivity over the summer by the most in a year and a half but the gain was smaller than initially thought.

A more productive and less-costly work force can boost corporate profits. But unless companies see more demand, they're unlikely to step up hiring.

Productivity rose at an annual rate of 2.3 percent in the July-September quarter, the Labor Department said. That was slower than the 3.1 percent the government estimated a month ago. Labor costs fell at a 2.5 percent rate, a slightly larger decline than the 2.4 percent drop first estimated.

The downward revision reflected slower economic growth in the third quarter. The government said total output grew at an annual rate of 2 percent, less than the 2.5 percent initially estimated.

Read more: http://finance.yahoo.com/news/productivity-summer-while-labor-costs-133643488.html

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It used to be that the price per unit productivity was pretty constant. Machinery and electronics made us more productive, so we took home more money.

All that de-coupled in the early 70's, and we've been moving down hill since.

What do the Republicans say? Work harder or they'll go overseas? :rofl:


Right.

[louis-t]

1. 'Increased productivity' is always presented as a good thing.

What it really means is: you work harder for less money, doing the job of 3 people and getting paid for less than one.

[krispos42]

2. Since the 1973 oil embargo

Dr. Ravi Batra details this in his book "The Myth of Free Trade", printed in 1991 or so. An interesting read, if a bit dry.

Our imports reached a certain critical mass when the price of oil jumped, and it's been downhill every since.