socialmedian: Good News If Your Job or Hours Were Cut

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Source: Daily Kos

Nov 06, 2009

Summary

Rex Nutting at MarketWatch reports on a bit of news that's warmed the cockles of the Dow today:

U.S. companies increased their output in the third quarter even as they slashed working hours, driving productivity up at a 9.5% annual rate in the quarter, the Labor Department estimated Thursday. ...

Productivity is output divided by hours worked. Output rose 4% annualized, while hours worked plunged 5%. Real hourly compensation increased at a 0.2% annual rate.

With productivity high and real compensation low, companies captured the lion's share of the benefits of higher productivity in the form of profits. Inflationary pressures remained very low.

The number of hours worked was the lowest since the first quarter of 1996. However, the economy produced 45% more goods and services in the third quarter of 2009 than it did in 1996.

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In case you're curious, this is part of trend that, with a few hiatuses, has been going on since 1980. Worker productivity rises, company profits rise, and worker compensation stays relatively flat.

The g

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