Is “Greater than expected” good news or bad news?
Rueters (today) – “Economists had expected productivity, which measures the hourly output per worker, to rise at a 6.0 percent rate after gaining 7.2 percent in the third quarter. In the second quarter, productivity had risen 6.9 percent.”
I know we all tend to agree that being productive must be a good thing, but remember that in Econo-ese, increasing productivity means squeezing more production out of fewer workers. Layoffs tend to boost productivity. This is why, the same article includes the observation that:
“Productivity has grown for five straight quarters as employers slashed costs, mostly by cutting jobs, to cope with the worst economic downturn since the Great Depression. In 2009, productivity grew 2.9 percent, the biggest rise in six years.”
