Productivity and Labor Costs Reach Tug of War
U.S. non-Farm Productivity for the third quarter was revised lower to +2.3%, lower than the 2.5% expected from Dow Jones and much lower than the preliminary figure of 3.1%. A change in hours worked and an output adjustment. Productivity was…
U.S. non-Farm Productivity for the third quarter was revised lower to +2.3%, lower than the 2.5% expected from Dow Jones and much lower than the preliminary figure of 3.1%. A change in hours worked and an output adjustment. Productivity was down by -0.1% in the second quarter.
One issue which is good for businesses but bad for job seekers is that the third quarter unit labor costs were down by -2.5% versus -0.1% in the second quarter. The question is whether lower labor costs will lead to more hiring or whether employers will keep trying to milk out more from each body at the office or factory.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
