High Worker Productivity Probably Means Record Jobless Recovery
Mark J. Perry submits:
The top chart above shows that real GDP in the fourth quarter of 2010 was slightly higher (by 0.14%) than real output in the fourth quarter of 2007 when the recession started. But even though the economy has made a complete recovery from the Great Recession in terms of real economic output, the U.S. economy is producing more real GDP today than in 2007 with 7.3 million fewer private sector jobs. This current economic recovery is an amazing story of huge increases in worker productivity (producing more output today with 6.3% fewer private sector workers than in 2007) that might be unprecedented in U.S. history over any three year period of time, or in any post-recession period.
What does that surge in worker productivity mean for the bottom lines of American companies? The bottom chart above shows that real corporate profits per private sector job reached an all-time record historicalComplete Story »