Q2 Productivity-Prel
Updated 08-Aug-08 09:14 ET
Highlights
Key Factors
Big Picture
- Productivity continues to rise at a steady pace, averaging near the long-term trend of 2% per year. This is far more important than is widely recognized. Productivity gains of 2% will more than offset the 0.5% annuarl rate of decline that has occurred in payrolls so far in 2008. Modest payroll declines of this magnitude do not correlate with declining real GDP because of productivity gains. Also, productivity gains help keep cost-push inflation pressures from rising wages in check. Over the long term, it is productivity gains the provide the increase in output that have led to the consistent gains in living standards in free market economies.
| Category |
Q2 |
Q1 |
Q4 |
Q3 |
Q2 |
| Nonfarm Business Sector |
|
|
|
|
|
| Productivity Q/Q |
2.2% |
2.6 |
0.8 |
5.8 |
4.1 |
| Unit Labor Costs Q/Q |
1.3 |
2.5 |
4.5 |
-2.4 |
-3.2 |
| Productivity Y/Y |
2.8% |
3.3 |
2.7 |
2.5 |
0.5 |
| Unit Labor Costs Y/Y |
1.5 |
0.3 |
0.9 |
2.0 |
3.7 |
