US Productivity Falls At Faster Pace, Labor Costs Rise In Q4 2014
Source: Associated Press
WASHINGTON (AP) U.S. worker productivity was even weaker than first thought from October through December while labor costs rose at a faster rate.
Productivity declined at an annual rate of 2.2 percent in the fourth quarter, weaker than the 1.8 percent drop that was estimated a month ago, the Commerce Department said Thursday. Labor costs rose at a 4.1 percent rate, faster than the 2.7 percent increase first estimated.
Weaker productivity and higher labor costs could spell inflation troubles for the economy. But analysts say that the changes in the fourth quarter are temporary and not an indication that inflation is about to be a problem.
Analysts had expected the revision for productivity would be weaker than the first estimate, reflecting the fact that the government last week revised its estimate for economic growth, as measured by the gross domestic product.
Read more: http://www.redding.com/news/wire-news/us-productivity-falls-at-faster-pace-labor-costs-rise-in-q4-2014
Loge23
(3,922 posts)The productivity issue is being used by red-dog economists to explain the flat wages - yes, I heard that in a presentation from a nationally-known Chamber of Commerce economist at a recent event. So wages are flat because the US workforce is not productive enough! No mention of lack of demand, of course, from the supply-siders.
Incredible, this separate reality that they have built for themselves.
Ed Suspicious
(8,879 posts)Ed Suspicious
(8,879 posts)For all of 2014, labor costs were up a modest 1.8 percent after a slight 0.2 percent gain in 2013. Productivity for all of 2014 was up just 0.7 percent, similar to the 0.9 percent gain in 2013.
Productivity continues to rise on an annual basis, but the headline betrays that reality to get people worked up about inflation
Populist_Prole
(5,364 posts)To them, "inflation" is the panic that sets in when the working class' incomes go up. When the 1 percent's income raises ( again ) they're absolutely bereft of this panic.
Ed Suspicious
(8,879 posts)Populist_Prole
(5,364 posts)It's how they contradict their own trickle-down meme; the irony is laid so bare:
To them, it's an article of faith that it is the one-percent's spending that drive the economy with their spending; not the hoi-polloi. "Job creators" blah blah blah
But if that's the case, by their own worrying that the prole's increased spending power will overheat the ecomomy; isn't that really admitting that it's the working class that drives the economy?
To me these clowns hide behind economic wonkery to push their real agenda: class-based contempt for the 99 percent.
Populist_Prole
(5,364 posts)That whole AP piece tries to pass itself off as some official or clinical sounding careful study. Turns out to be just another mouthpiece for the plutocrats.
mercuryblues
(14,532 posts)have a direct impact on productivity. Considering that many states are jumping on the RTW band wagon this should not come as a surprise.
http://neatoday.org/2012/08/14/right-to-work-laws-increase-poverty-decrease-productivity-2/
According to 2009 data, the GDP per capita for worker-friendly states collectively was $43,899, while the GDP per capita for the RTW states was $38,755 or 13.3 percent lower. It is worth emphasizing that GDP represents goods and services produced, and is not the same as per capita income. Thus, the initial analysis of this measure indicates that the worker-friendly states appear to be significantly more productive than the RTW states.