U.S. Productivity Drops–Temporary Plateau on Humans and What We Can Do Without Additional Technology & Algorithms?
Posted Aug 11 2010 11:42pm
If you have watched the news, companies are getting used to running leaner and sometimes meaner too. Layoffs just seem to keep on rolling faster than new jobs can be created. A certain number of these jobs won’t ever come back as technology is replacing much of what we used to do. I may not like all of this as much as everyone else, but it’s a fact we have to live with as it’s not going to stop any time soon.
Expectations from employees is on the rise too and as we saw yesterday with JetBlue people are reaching a saturation point to where they can’t cope at times. We have that point if driven there. Labor costs are down and so are earnings so where’s the incentives that used to be there and will robotics continue to dwindle down more jobs, probably. We don’t seem to have the “mental down” time that we need today and disruption and distraction run rampid, thus when over powered with a feeling of not being able to meet goals well us humans kind of give up if the carrot of expectations is too far out there to achieve. BD
WASHINGTON — U.S. productivity dropped this spring for the first time in more than a year, a sign that companies may need to hire more workers in the near future.
Worker productivity declined at an annual rate of 0.9 percent in the April-to-June quarter after posting large gains throughout 2009, the Labor Department reported Tuesday. Unit labor costs edged up 0.2 percent in the second quarter, the first increase since the spring of 2009.
Productivity rose by large amounts during the recession. Companies slashed their payrolls and pushed unemployment up to the highest levels in more than two decades. Economists said a slowing in productivity would be a welcome development if it translates into more hiring.
Productivity for all of 2009 rose 3.5 percent, the best showing in six years and a reflection of companies' ability to produce more with fewer workers.