Labor productivity rate falls at the fastest pace since 1960

[fishweewee]

From CNBC

 

Labor productivity rate falls at the fastest pace since 1960

JEFF COX

DECEMBER 07, 2021

Labor productivity fell at the fastest rate in more than 60 years in the third quarter, according to a Labor Department report Tuesday.

 

A measure of output versus energy, nonfarm business sector productivity declined 5.2% from the previous three-month period, worse than the Dow Jones estimate for a drop of 5%, and the worst since the second quarter of 1960. The slide happened as output increased 1.8% while hours worked rose 7.4%.

 

On a year-over-year basis, productivity fell 0.6%, which itself was the biggest decline since the second quarter of 1993.

 

Inflation also was evident in the report.

 

Unit labor costs, or the measure of how much businesses pay their per unit of input, rose 9.6% from the second quarter, which reflected a 3.9% increase in compensation combined with the decline in productivity. That was well above the 8.4% Dow Jones estimate.

 

Higher levels of productivity can offset wage increases when determining unit labor costs, but lower levels raise the number.

 

Federal Reserve officials watch the productivity data closely for its impact on inflation. Low productivity levels tend to boost inflation as companies are forced to raise prices as unit labor costs increase and profit margins come under pressure.

 

The economy currently is in the midst of its fastest inflation spurt in more than 30 years, and Fed officials are expected to begin tightening monetary policy to combat rising prices.

[ridenfish]

Biden's America.  He owns all of this.

[jkrock]

Fake news.  According to the progs, if you pay a McDonald's worker $15 an hour, the price of a whopper doesn;t go up.  Companies can absorb these cost increases, they just need to pay the CEO less. 

[jkrock]

6 mins ago, ridenfish said:

Biden's America.  He owns all of this.

Build Back Broke

[dena]

4 mins ago, jkrock said:

Fake news.  According to the progs, if you pay a McDonald's worker $15 an hour, the price of a whopper doesn;t go up.  Companies can absorb these cost increases, they just need to pay the CEO less. 

They should pay the president less if the economy does poorly.

He gets paid the same, no matter what he does, and how we do.

At least Trump took zero salary.

[Nessmuk]

49 mins ago, fishweewee said:

From CNBC

 

Labor productivity rate falls at the fastest pace since 1960

JEFF COX

DECEMBER 07, 2021

Labor productivity fell at the fastest rate in more than 60 years in the third quarter, according to a Labor Department report Tuesday.

 

A measure of output versus energy, nonfarm business sector productivity declined 5.2% from the previous three-month period, worse than the Dow Jones estimate for a drop of 5%, and the worst since the second quarter of 1960. The slide happened as output increased 1.8% while hours worked rose 7.4%.

 

On a year-over-year basis, productivity fell 0.6%, which itself was the biggest decline since the second quarter of 1993.

 

Inflation also was evident in the report.

 

Unit labor costs, or the measure of how much businesses pay their per unit of input, rose 9.6% from the second quarter, which reflected a 3.9% increase in compensation combined with the decline in productivity. That was well above the 8.4% Dow Jones estimate.

 

Higher levels of productivity can offset wage increases when determining unit labor costs, but lower levels raise the number.

 

Federal Reserve officials watch the productivity data closely for its impact on inflation. Low productivity levels tend to boost inflation as companies are forced to raise prices as unit labor costs increase and profit margins come under pressure.

 

The economy currently is in the midst of its fastest inflation spurt in more than 30 years, and Fed officials are expected to begin tightening monetary policy to combat rising prices.

 

I mean, it's interesting data, but without addressing causes, it doesn't help much in terms of policy.

[albacized]

I wonder how being forced to work from home has to do with this - it was supposed to be short term, but this admin has other ideas

[dena]

Between the covid mandates and closures, the accepted high absenteeism allowed at work now, the high numbers of folks out camping and boating, is it any wonder production is down?

 

[JimW]

Coming off a pandemic induced record high spike.  Meh

[Gotcow?]

Gee, what a surprise.

 

Impossibly lean workforce + unrealistic productivity increase expectations + supply chain blown to hell = KABOOM!

[Paulie Herman]

Anybody in the private sector who actually makes something for a living isn't surprised at all.  Incentives for people to be productive have been crushed.  Government does not understand or care to motivate people into productive endeavors.  Unless you consider being a woke weirdo somehow productive.

[ihocky2]

2 hours ago, dena said:

Between the covid mandates and closures, the accepted high absenteeism allowed at work now, the high numbers of folks out camping and boating, is it any wonder production is down?

 

It's like you are sitting in the office next to me. We haven't fired anyone for attendance in almost 18 months because we are afraid we won't find a replacement. The current idea is that 3 days a week of work is better than none. When did that become the norm?

[Surf bomber]

Only the essiential /front line /hospital workers , firemen,cops,ems and the delivery folks can go work… Lowe’s, Home Depot never closed …Amazon is open …ups is full on …only the dead beats scamming the system are home ….inflation=higher rates = less spending money….a few more foreclosures on that over inflated house price …..maybe the karens and man bun Kens can leave the communist party , go to work and give up joes money t I t …lol lol lol