An article in CCN Money reports that, based on current statistics provided by the US Labor Department, employee productivity fell by 0.9% in the second quarter. The author goes on to say that people are burning out, company's need to realize that they need to hire more people to keep productivity levels in check, and potentially to add consumers to the marketplace to fuel demand for more goods and services.
The actual report from the DLS is here: http://www.bls.gov/news.release/prod2.nr0.htm
Is the author making a populist argument here. Looking at the numbers in more detail, some things jump out at me. Manufacturing and durable manufacturing productivity increases were significant on a Quarterly and Annual basis (over 10%), with hourly costs and unit labor costs actually decreasing. The result of better technology and manufacturing automation? Are we making progress in becoming a competitive global manufacturer? Are unions becoming less effective? What is driving this increase in manufacturing productivity and lower labor costs? Are people being worked to the bone, or is better technology and automation making it possible to do more with less people? If this is the case, then that is a good thing for american competitiveness, but where do the factory workers go? Perhaps this is another case of 'Creative Destruction' as defined by Thomas Friedman. Lower level jobs being displaced by technology will require workers to get training in new skills that are applicable in more current industries.
Where are the new middle class jobs. They are not the old middle class jobs.
2 comments:
I do not have an reasonable opinion/answer on this subject of jobs/productivity/public jobs vs private sector, and the market responses: and the Fed today eluded to the possibility of falling into another recession. I just don't know!!! Your Blog pretty much chronicles the confusion.
I am, however, a very strong believer that we can not prosper or build the economy without solid manufacturing (NOT service jobs or Financial "stuff"). Most of the past stimulus, and the current bill for teachers that the Senate passed and House came back to vote on, is to protect PUBLIC sector jobs. In order to pay a single salary to a public worker a private worker must get a paycheck and pay taxes. Regardless of any employment numbers, it takes a hugh amount of employment just to keep up with a growing potential work force, never mind hiring those unemployed.
I made a comment to you once that you probably thought was a little flippant; "Building windmills will not build the economy, we need to take a natural resource and build a viable product that some one wants. A Gov't subsidy to help companies build products is NOT a good solution."
Another thing; if you were a businessman facing higher taxes next year including, wages and dividends, looking down the road at the huge cost of the new health care plan, a big cap and trade tax, a need to improve productivity via increased costs of capitol equipment or layoffs, the anti business sentiment of the Admin. (Regulation is one example), would you hoard your cash? What incentives do you have to hire and increase business?
Did you see how they plan to pay for the Teacher/public worker bailout? They will take the money out of the 2014 budget, specifically from welfare benifits...WOW
And the housing market, which is always the first to pick up at the end of a recession, is in a shambles; ie; the Fannie and Freddie current debacles.
What policies do you see the Administration implementing to remove the uncertainty that businessmen, as well and the general public are facing? Example: sending oil rigs out of the Gulf in large numbers does not help the employment in the Gulf States. The 41% (and falling) approval rating of our President is just a sign of the morose feeling so many of us have. Things are pretty much out of control when the Feds are suing States and States are suing the Feds. The policies implemented by the Admin are so far out of tune with what the people want or believe in that this causes even more discontent.
I don't know; I don't even like what I just wrote.I guess an answer is to watch the market, sell high, buy low and the hell with the rest..
You are doing a nice job with your blog....dad
I do not have an reasonable opinion/answer on this subject of jobs/productivity/public jobs vs private sector, and the market responses: and the Fed today eluded to the possibility of falling into another recession. I just don't know!!! Your Blog pretty much chronicles the confusion.
I am, however, a very strong believer that we can not prosper or build the economy without solid manufacturing (NOT service jobs or Financial "stuff"). Most of the past stimulus, and the current bill for teachers that the Senate passed and House came back to vote on, is to protect PUBLIC sector jobs. In order to pay a single salary to a public worker a private worker must get a paycheck and pay taxes. Regardless of any employment numbers, it takes a hugh amount of employment just to keep up with a growing potential work force, never mind hiring those unemployed.
I made a comment to you once that you probably thought was a little flippant; "Building windmills will not build the economy, we need to take a natural resource and build a viable product that some one wants. A Gov't subsidy to help companies build products is NOT a good solution."
Another thing; if you were a businessman facing higher taxes next year including, wages and dividends, looking down the road at the huge cost of the new health care plan, a big cap and trade tax, a need to improve productivity via increased costs of capitol equipment or layoffs, the anti business sentiment of the Admin. (Regulation is one example), would you hoard your cash? What incentives do you have to hire and increase business?
Did you see how they plan to pay for the Teacher/public worker bailout? They will take the money out of the 2014 budget, specifically from welfare benifits...WOW
And the housing market, which is always the first to pick up at the end of a recession, is in a shambles; ie; the Fannie and Freddie current debacles.
What policies do you see the Administration implementing to remove the uncertainty that businessmen, as well and the general public are facing? Example: sending oil rigs out of the Gulf in large numbers does not help the employment in the Gulf States. The 41% (and falling) approval rating of our President is just a sign of the morose feeling so many of us have. Things are pretty much out of control when the Feds are suing States and States are suing the Feds. The policies implemented by the Admin are so far out of tune with what the people want or believe in that this causes even more discontent.
I don't know; I don't even like what I just wrote.I guess an answer is to watch the market, sell high, buy low and the hell with the rest..
You are doing a nice job with your blog....dad
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