Earlier this week, the Bureau of Labor Statistics (BLS) released its fourth quarter report on Productivity and Costs. The result: Continuing productivity gains for the business sector and continuing wage erosion for American workers.
According to the BLS quarterly report, non-farm labor productivity increased at an annual rate of 6.2 percent during the fourth quarter 2009. This gain in productivity reflects increases of 7.2 percent in output and 1.0 percent in hours worked.
Unit labor costs fell 4.4 percent during the same period, the largest decline in unit labor costs since 2002. High unemployment has shrunk the US labor market and created a surge in productivity, as businesses squeeze more output from fewer workers. The implications are not good for an economic recovery any time soon. Rises in productivity hamper job creation as employers decide that they can run their companies with fewer workers.
These results are grim news for American workers who will work harder, longer hours while taking home less money. Of course, higher productivity means more profit in the pockets of corporate owners and their CEOs, who serve themselves larger and larger slices of the American pie while workers get less and less. As our country slides deeper and deeper into banana republic status, I wonder when our citizens will finally wake up.
Octo, are you suggesting that US workers should get more for producing more? What are you, some kind of communist?? This is America! We don't do things that way here!! We live bu the golden rule!!! He who has the gold, makes the rule!!!! Now how much gold you you have? ;-)
ReplyDeleteNot much gold, have I, but I did stay at a Holiday Inn last night.
ReplyDeleteIn that case, you'll be the next President.
ReplyDeleteSad to say, I am staying at a Holiday Inn right now. I'd love to be somewhere else.
ReplyDeleteAnyway, this is an incredibly important point that you are making. "Higher productivity" has such a positive sound, but what it really means (particularly in times of high unemployment) is squeezing more and more work out of fewer and fewer people, leaving ever greater numbers of workers out of luck, in a sick game of musical chairs. Right now, there is nothing more destructive to the American people than higher productivity.