The Jobless Recovery
from the WSJ:
"The economy is experiencing another huge increase in productivity in the third quarter. Nonfarm labor productivity grew at an annual rate of 6.6% in the second quarter. Look for something in that eye-popping range for the current quarter. Here’s a rough sketch of the numbers: Today’s jobs numbers showed that the Labor Department’s index of aggregate hours worked by Americans was at 98.9 in August, down steeply from a second quarter average of 99.7. That’s from a combination of job cuts, reductions in overtime and other cuts to work shifts. Let’s assume there’s no change in hours worked in September. That would mean the total amount of hours that Americans worked in the third quarter would be down at about a 2.8% annual rate. The economy seems to be on track to grow at an annual rate of 3% or more. More output and fewer hours worked means more productivity in the neighborhood of 6%. You’ll be hearing a lot of talk about a jobless recovery in the months ahead. The upside is that this is good for corporate profits. The downside is that workers will suffer even after the economy comes back."