Weak Productivity Is Another Bane of Recovery - Real Time Economics - WSJ

S e p te m b e r 5 2 0 1 2 5 1 0 p m weak productivity

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Unformatted text preview: 2 , 5 :1 0 P M Weak Productivity Is Another Bane of Recovery blog s.wsj.com/economics/2012/09/05/weak- pr oductivity- is- another - bane- of- r ecover y/ 1/6 15 04 2013 Weak Pr oductivity Is Another Bane of Recover y - Real Time Economics - WSJ Comments (3) Article E ma i l P rint By Kathleen Madigan An upward revis ion in s ec ond-quarter produc tivity c an’t m as k a dis turbing trend in this rec overy: Output per hour worked is growing below its potential and c reating a drag on profits , inc om es , living s tandards , and tax rec eipts . On W ednes day the Labor De partme nt s aid output per hour worked in the nonfarm bus ines s s ec tor grew at an annual rate of 2.2% from the 1.6% reported a m onth ago. But when c om pared with year-ago levels , s ec ondquarter growth was jus t 1.2% — the s am e m uddling-along pac e of the previous s ix quarters . That’s a far c ry from the 3%-plus rate of the 1990s and early 2000s when bus ines s es were reaping the benefits of the Internet and tec hnology innovation. Strong produc tivity growt...
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