Productivity up 6.6 percent in 2Q, most in 6 year (normally goods news, this time, not so much)

AP Business via YAHOO ^ | Wednesday September 2, 2009, 8:53 am EDT | Martin Crutsinger, AP Economics Writer

[11th Commandment]

WASHINGTON (AP) -- Worker productivity, the single biggest factor determining living standards, grew at the fastest pace in nearly six years in the spring while labor costs fell by the most in nine years, as companies slashed costs to survive the recession.

Increases in productivity can help boost living standards because companies can increase wages financed by rising output. But during the recession, companies have been using their productivity gains to bolster their bottom lines as many struggle to stay in business.

[11th Commandment]

The market fights inflation via productivity gains. Inflation is being driven by the Federal Government’s unquenchable thirst for debt, its horrible energy policy that locks up our natural resources and over reaching regulation that drives up business costs. As such all workers have been “taxed” by the government via longer work weeks for salaried employees, shorter work weeks for hourly employees and flat or decreasing wages for all.

Click through and read third paragraph of article.. source of current market angst.

[John123]

Worker productivity

Is this the amount of work done by scared and worried employees that are still standing after all the other co-workers were fired the previous week?

[RobRoy]

Over here:

http://www.freerepublic.com/focus/news/2330303/posts

Same title even.

[Le Chien Rouge]

Is this the amount of work done by scared and worried employees that are still standing after all the other co-workers were fired the previous week?

Yes.

My company just had another round of cutbacks.

We do the same amount of work with fewer people.

I’m down to 4 day work weeks.

Christmas is going to depressing for ANYONE in retail this year.

[11th Commandment]

Sorry- I seached and it did not hit...

[RobRoy]

I have had that problem myself. I can’t explain it and from time to time it can be quite frustrating.

[boomop1]

Less workers doing more = higher production, the laid off are screwed.

[NVDave]

You got it. Same output from fewer employees (as measured by lower wage expenses), ergo “higher productivity.”

This bodes ill for re-hiring trends, never mind employment growth in the future.

[USNBandit]

Normally the productivity boost comes during a recovery, as demand rises, but before hiring happens. Really tough for hiring to happen with the unknown cost to employers of Obamacare still looming.

[griswold3]

Don’t forget Card Check and Cap and Trade legislation that will add to business expenses.
All programs designed for ‘central planning’.
Cost cutting will only last so long. The streaming revenue increases won’t be realized and that will be the next leg down.

[USNBandit]

Cap and Trade is going to be an economy killer. Most businesses operate at a margin well below the cost of Cap and Trade.

Airlines are going to get crushed. The reality of the airlines is that at a certain price people stop buying tickets. Cap and Trade will boost the cost of tickets up past that threshold. Optional travel will all but cease.