Productivity Revival, We Hardly Knew Ye?
The Washington Post's Robert Samuelson worries about a slowdown in the growth of labor productivity:
"The start of a new year is a good time to take stock, and there are few better indicators of our long-term economic prospects -- and also our prospects for political and social peace -- than productivity... The good news is that productivity has been growing strongly; the bad news is that it may be moving to a much slower path."
According to the BLS, US annual labor productivity fell in the mid-1970's and picked up in the mid-1990's...
Annual labor productivity growth rate
1948-73 - 2.79%
1974-95 - 1.40%
1996-05 - 2.84%
The statistical basis for Samuelson's fretting is that the average for the last 4 quarters is 1.4%. It may be premature to declare a slowdown, but as he points out the lack of saving by US households, and the dis-saving by the government are not exactly conducive to investment.
"The start of a new year is a good time to take stock, and there are few better indicators of our long-term economic prospects -- and also our prospects for political and social peace -- than productivity... The good news is that productivity has been growing strongly; the bad news is that it may be moving to a much slower path."
According to the BLS, US annual labor productivity fell in the mid-1970's and picked up in the mid-1990's...
Annual labor productivity growth rate
1948-73 - 2.79%
1974-95 - 1.40%
1996-05 - 2.84%
The statistical basis for Samuelson's fretting is that the average for the last 4 quarters is 1.4%. It may be premature to declare a slowdown, but as he points out the lack of saving by US households, and the dis-saving by the government are not exactly conducive to investment.
posted by Bill C at 2:24 PM
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