Posted on 11/02/2003 2:52:46 PM PST by Bryan
Good news and bad news I'd say. US productivity soared 8% in the 3rd qtr. According to economic theory non farm wages should vary with productivity. Once upon a time that was true, but not any more.
From the Bureau of Labor Statistics:
CPI:
+0.3% in Sep 2003
Unemployment Rate:
6.1% in Sep 2003
Payroll Employment:
+57,000(p) in Sep 2003
Average Hourly Earnings:
-$0.01(p) in Sep 2003
PPI:
+0.3%(p) in Sep 2003
ECI:
+1.0% in 3rd Qtr of 2003
Productivity:
+8.1% in 3rd Qtr of 2003
U.S. Import Price Index:
-0.5% in Sep 2003
http://stats.bls.gov/
Note that average earnings declined in September despite an 8% increase in productivity for the quarter.
This is not a new situation. It has been this way since the 70's when the US became a free trade economy.
This "new economy" is quite a situation. Productivity goes up, non supervisory wages decline, unemployment is high, immigration is uncontrolled, H1B and L1 visas are the all the rage and the FTAA is coming soon to a hemisphere near you.
Only in America.
Regards
J.R.
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