The wipeout in 2008 had a silver lining: I was able to rid myself of lower-performing people and rebuild capacity with a combination of skilled people and machines that actually produced positive cash flow.
Economists overestimated Q1 productivity and underestimated Q1 unit labor costs in spite of blaming the weather and the port strike as transitory weakness.Let's take a look at Bloomberg Consensus Estimates for Productivity and Costs.
Today's BLS release on Productivity and Costs shows a back-to-back decline in productivity accompanied with rising wages. Productivity is up year-over year, but barely, at 0.6%.Nonfarm business sector labor productivity decreased at a 1.9 percent annual rate during the first quarter of 2015, the U.S. Bureau of Labor Statistics reported today, as output declined 0.2 percent and hours worked increased 1.7 percent .
From Yahoo! Finance:
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Guest post by Mark Doms, Chief EconomistEarlier today, the Bureau of Labor
Statistics (BLS) released a report showing that the private sector added
172,000 jobs last month, and overall employment rose by 163,000. While there’s
more work to be done, the economy is creating jobs on a consistent basis.
The economy has added private sector jobs for 29 straight months, for a total
of 4.5 million jobs. In fact, since the beginning of the year, the
economy has added over 1.1 million private sector jobs. Today’s employment
report provides further evidence that the U.S. economy is continuing to recover
from the deepest recession since the Great Depression.
Additionally, the BLS report also
showed that the manufacturing sector continues to be a bright spot, which is
especially important for middle class families, because these jobs
pay high wages and provide high levels of benefits.
The good news is that the U.S.
manufacturing sector’s recovery continues: 532,000 new manufacturing jobs have
been created over the past 30 months, with 25,000 being added in July. In terms of production, manufacturing output is
up 19.8 percent from the trough reached in June 2009.
part of manufacturing that has been consistently strong is the motor vehicles
and parts industry which has added 165,000 jobs since June 2009.
Further, production of cars and trucks in the U.S. reached 10.5 million units
at an annual rate in June, a sharp contrast to the shockingly low level of 3.7
million units witnessed in January 2009. To continue the revival in
manufacturing jobs and output, it is crucial that we implement President
Obama’s proposals providing tax incentives for manufacturers, supporting
training for the workforce, creating manufacturing hubs, and ending tax breaks
for companies that send jobs overseas and provide tax incentives for companies
bringing jobs back to the United States.
Mark J. Perry submits:
The chart above show annual real manufacturing output per worker from 1947-2010 using data from the BEA for manufacturing output by industry and data from the BLS on manufacturing employment.