Productivity falls 0.9 percent in second quarter!

[The Great Aztec Joe]

Productivity drops 0.9 percent in spring, first fall since 2008; labor costs edge higher


WASHINGTON (AP) -- Worker productivity dropped this spring for the first time in more than a year, a sign that companies may need to step up hiring if they hope to grow.

Productivity declined at an annual rate of 0.9 percent in the April-to-June quarter after posting large gains throughout 2009, the Labor Department said Tuesday. Unit labor costs edged up 0.2 percent in the second quarter, the first increase since the spring of 2009.

Employee output rose by large amounts during the recession. Companies slashed their payrolls and pushed unemployment up to the highest levels in more than two decades. Economists said a slowing in productivity would be a welcome development if it translates into more hiring.

finance.yahoo.com/news/Productivity-falls-09-percent-apf-3260237898.html?x=0&sec=topStories&pos=2&asset=17467117fa1e1ab2050e5b4c2c33e23c&ccode=

Aug 10..... 8:30 AM..... Productivity-Prelinary.. Q2..... -0.9%
Aug 10..... 8:30 AM..... Unit Labor Costs ............Q2..... 0.2%
biz.yahoo.com/c/e.html

[The Great Aztec Joe]

The overall information hints at stagflation. Costs are going up (not yet astronomically) but employment productivity is going down and employment is still not going up. This is a hell of a pickle you got us into Olly.

[aztecwin]

I think that it shows that employees are near the breaking point as to what they can do to add to productivity and may be slacking from fatigue.

[The Great Aztec Joe]

Aug 10, 2010 11:38:17 GMT -8 aztecwin said:

I think that it shows that employees are near the breaking point as to what they can do to add to productivity and may be slacking from fatigue.

You are probably quite right.

You can only whip a horse so much. After that you are whipping a dead horse. That won't get you anywhere.