U.S. worker productivity in the fourth quarter unexpectedly fell as the economy shrank even faster than companies cut jobs and hours.
Productivity, a measure of employee output per hour, fell at a 0.4 percent annual rate, the first decrease in a year and much less than the 3.2 percent gain estimated last month, the Labor Department said today in Washington. Labor costs climbed 5.7 percent, more than prior projections.
Not to speculate, but I suspect that a lot of workers got lazy once Obama was elected, because they knew they knew we’d soon have a cradle-to-grave welfare state where all of their money would be taxed.
My financial friend writes:
Productivity is effectively calculated as production/hours, which since we have a massive oversupply of capacity right now it means that demand has dropped so the only solution is to chop more jobs.
Productivity right now is directly related to job cuts – slash jobs productivity climbs because we’re fully demand based right now.
My theory – Gdp shrinkage is faster than job shrinkage so job cuts need to accelerate to keep pace.
How f-ing scary is that?