U.S. 2nd-Qtr Productivity Rises at 2.9%; smallest gain in almost two years

[papau]

Note - The Reuters story picks up the GOP spin - Productivity higher than expected -- LOL -- :-)

http://quote.bloomberg.com/apps/news?pid=10000103&sid=aE3HCmFnXiho&refer=news_index

U.S. 2nd-Qtr Productivity Rises at 2.9%; smallest gain in almost two years
Aug. 10 (Bloomberg) -- U.S. worker productivity grew at a 2.9 percent annual rate from April through June, the smallest gain in almost two years, and labor costs accelerated, a government report showed.

Productivity, which gauges how efficiently the economy operates by measuring the amount of work done by an employee in an hour, slowed from a revised 3.7 percent annual rate in the previous three months, the Labor Department said in Washington. Labor costs rose at a 1.9 percent annual rate, the most since the second quarter of 2002, after growing 0.3 percent in the first quarter of this year.

Smaller productivity gains suggest companies have already obtained most of the efficiency increases they can get from their employees. The slowdown may lead to increasing labor costs and prices, a reason Federal Reserve policy makers are expected to raise the target for the benchmark interest rate this afternoon. <snip>

The second-quarter increase in productivity was the weakest since the fourth quarter of 2002. Even so, the number ``is still quite healthy,'' Porter said. Productivity rose 4.7 percent over 12 months, which ``is incredibly strong,'' he said. <snip>

[Enraged_Ape]

1. I see that as good news

Since these numbers are pretty much elevated by people working longer and longer hours for the same or less pay and reduced benefits. It looks like they're maxing us out.

[dumpster_baby]

3. man, it sure is good to see that someone else in this world sees things...

....the same way I do. Why is this not obvious to everyone else? Why do the newspapers and tv not even mention this when they talk about productivity?

[okieinpain]

6. only so much blood, can be extracted from a rock, looks like

they are going to have go ahead and finish moving everything to india. I can't wait for the day, when the riots start in india, about american companies using them like farm animals. oh then they will come running home to america talking about how bad the indian people are. CEO to rush "salvages I tell ya, salvages".

:~)

[tandot]

2. I haven't had a raise in 3 years but more duties added...

my desire to increase my productivity even more is at an all time low...

Do those corporate idiots really expect that we swallow that load of BS? You give us less money and but expect us to do more? For how long do they think we'll that before we say "shove it"

If employees are not happy, the company won't be happy...

[llmart]

7. Same here.

My husband hasn't had a raise since * stole office. Also, during the Clinton years he had unlimited overtime for which he was paid time and a half, now he's expected to work the same overtime for no pay! For three years the company stopped matching the 401K and just a couple of months ago started it back up but not to the same percentage as before. And we have to pay more for our medical benefits. Meanwhile, the cost of living has gone up. So tell me again how those taxcuts helped middle America?

I, on the other hand, am a union worker so I get a raise twice a year.

[tandot]

8. When I heard that Bush was saying that the economy is turning the corner

could only laugh. What corner? Turning right into Misery Avenue? U-turn? Heading down the wrong way on a highway ...right into oncoming traffic?

I have no doubt that his rich buddies are better off than they ever where. Bush takes good care of his friends and gives a sh*t about us.

[leesa]

4. They can't even keep productivity up with all the outsourcing

of jobs and slashing of benefits AND without any corporate tax burden. The GOP economic miracle.

[TahitiNut]

5. "The beatings will continue until morale improves."

'Output' grew by 3.5%
Hours worked increased by 1.5%
Real compensation per hour went down by 0.5%!

Any claim that the American labor force isn't competitive with any labor force on the planet is specious. "Off-shoring" is done more for other reasons than labor productivity. Those reasons include: free rein to pollute the planet, evasion of liability for Bhopal-like reckless endangerment, multinational evasion of taxation (bribes are cheaper than fair taxes and accounting shell games pay handsomely), and leverage of political and economic power.