Posted on 05/07/2023 9:08:51 AM PDT by ConservativeInPA
Today the BLS released Labor Productivity and Costs for 2023 Q1. Let's take a look.
Labor Productivity Details
Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers. Nonfarm business sector labor productivity decreased 2.7 percent in the first quarter of 2023
Output increased 0.2 percent and hours worked increased 3.0 percent. From the same quarter a year ago, nonfarm business sector labor productivity decreased 0.9 percent, reflecting a 1.3-percent increase in output and a 2.3-percent increase in hours worked. The 1.1-percent rate of productivity growth in the current business cycle thus far is a historically low productivity growth rate; no other previous business cycle had lower productivity growth, except for the brief six-quarter cycle from 1980 Q1 to 1981 Q3, which exhibited 1.0 percent growth. The 0.9-percent productivity decline is the first time the four-quarter change series has remained negative for five consecutive quarters; this series begins in the first quarter of 1948.
Unit Labor Cost Details
Unit labor costs in the nonfarm business sector increased 6.3 percent in the first quarter of 2023, reflecting a 3.4-percent increase in hourly compensation and a 2.7-percent decrease in productivity. Unit labor costs increased 5.8 percent over the last four quarters. Real hourly compensation, which takes into account consumer prices, decreased 0.3 percent in the first quarter of 2023, and declined 1.0 percent over the last four quarters.
What's Going On With Productivity?
- Biden rules and regulations
- Biden's clean energy push including the ridiculously-named Inflation Reduction Act (IRA)
- Retiring baby boomers are replaced by less skilled workers
The article’s last point about boomers retiring is entirely impotent. There are now multiple worthless generations in the workforce. 'Unskilled' does not adequately describe their lack of ability. It’s a mentality that goes much deeper than skill sets.
This mentality is also reflected in politics. All too many people look towards government to manage everything in their lives. Regulations are desired by these lazy asses. These same morons seriously believe that government spending, such as the now increased estimate of $1.04 Trillion of the Inflation Reduction Act, will cure inflation. All it does is pumps money into the economy in the most unproductive manners possible. It’s a double whammy. Not only it creates more dollars, it decreases productivity. Both cause inflation.
Why do people keep saying we aren’t in a recession, when we have been for over a year?
“Why do people keep saying we aren’t in a recession, when we have been for over a year?”
If Trump as in office the media would be pushing recession for over a year now.
Something else for Joe to brag about ... Hey, it’s only been for 5 quarters ... under Trump is was 25 quarters ...
Excellent observation. To put it bluntly, productivity is in a recession. Think about what that really means. Negative GDP for two consecutive quarters is no longer an effective indicator of recession. The problem with using GDP is that government spending increases GDP. The government doesn’t build a damn thing. It only gets in the way of production. The other, but lesser known and acknowledged indicator of inflation, inverted treasury yield curves, has been spot on. BTW, we can thank John Maynard Keynes for the way GDP is calculated. It is incompressible as to why our government and institutions like the Federal Reserve hold onto the antiquated and empirically proven incorrect notions from a socialist economist.
And NYS just jacked it minimum wage.
Again.
Productivity bedamned.
“Inflation is caused by too many dollars chasing too few good.”
Some times.
Present day inflation is mostly caused by artifice - leftists and eggheads forcing the increased costs of energy.
“Year-Over-Year Productivity Negative for 5 Quarters, That’s Never Happened Before”
guess we gonna need more AI cow bell ...
We’ve been in a Recession since 1.20.21, and we’ll be sliding into a Depression — not on the order of 1929 — this Summer. Prep for it.
I think that’s about a year early. 2021 may have been my best year ever, for my business.
There was a period of Trump’s ‘goodness’ leftover for a while, but we were in a Recession the minute that POS was sworn-in. Not all businesses and people were affected immediately, but it was underway.
Don’t worry the fake media will tell you it’s all good
My pea brain can only retain that until I go to grocery store.
“Why do people keep saying we aren’t in a recession, when we have been for over a year?”
I’ve wondered the same. Economists and “experts” have been massaging the numbers, changing definitions, and ignoring facts that do not support the narrative that our economy is booming.
Another issue being ignored:
https://www.zerohedge.com/geopolitical/escobar-global-de-dollarization-nearing-crossroads-moment
Its the 1970s all over again, but much worse. America needs some serious supply-side reforms to blow up the bloated woke regulatory state.
Its far worse now than in the late 1970s though - we are far deeper in debt, our demographics are very top-heavy, society and culture are badly divided, and neo-marxism has a hold on Washington DC.
In sum, there is no stomach in America for even small reforms
We are in the 50 year cycle. 1870’s, 1920’s, 1970’s and 2020’s. But this time, the govt is working like hell to make it as painful as possible for us.
It is hideous that so few people learn from history.
If you have time, watch the linked video. It is uncanny how so many problems reoccur; just the names and amounts change. History rhymes.
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