Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

U.S. Productivity Fastest in Two Years, Labor Costs Low  Join our daily free Newsletter

MENAFN - Saudi Press Agency - 06/12/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - Saudi Press Agency) The productivity of U.S. workers increased at a much faster pace than initially estimated in the third quarter, as businesses delayed hiring even as output grew, the government reported Wednesday.

The Labor Department said productivity grew at an annual rate of 2.9 percent in the July-to-September quarter, the fastest pace since the third quarter of 2010. It previously estimated that productivity hourly output per worker‚"rose at a 1.9 percent rate in the third quarter.

The upward revision to productivity growth reflected an upward revision for third-quarter gross domestic product (GDP) growth to a 2.7 percent rate from the initial estimate of 2.0 percent. Specifically, productivity was revised higher because economic growth was faster, while hours worked were unchanged.

Unit labor costs‚"a measure of the labor-related cost for any given unit of output fell at a 1.9 percent annual rate in the third quarter, far more than the 0.1 percent decline initially estimated. Labor costs fell for a second consecutive quarter and were up only 0.1 percent from a year ago, highlighting the lack of wage-related inflation pressures in the economy.

The report suggests companies are finding ways to squeeze more output from their existing workers. While that is a good sign for corporate profits, it is discouraging for people who want a job.

Despite the third-quarter gain, the trend in productivity has been relatively weak. It has grown only 1.7 percent from a year ago, or half the average growth that companies saw in 2010 and 2009, shortly after many firms fired workers to cut costs during the Great Recession.

Companies may ultimately need to hire more workers if they see only modest gains in productivity and more demand for their products. Economists expect productivity will slow for the rest of this year and through 2013. Higher productivity is typical during and after a recession.

 






  MENA News Headlines


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help