Showing posts with the label labor production

Improvements in American Worker Productivity

Labor productivity and relative wages have increased during the third quarter of 2014. The U.S. Bureau of Labor Statistics reported that output increased 4.4%, labor productivity rose 2 %, and working hours increased 2.3%. When comparing the third quarter of 2013 to 2014 you find that productivity increased a total of .9%. Hourly compensation also increased 2.3% putting more money into worker’s pockets. American workers have a tough job and are trying to forget the nasty years of the recession. Improving productivity and subsequently raising wages has a duel benefit of keeping overall costs lower, effective use of labor resources, and paying productive workers higher compensation. It is a win-win situation for investors, business owners, and employees. Labor productivity is calculated by dividing an index of real output with an index of all hours worked. It is a fairly simply calculation that determines how much per unit productivity each worker increased or decreased ov