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1Q2011 Productivity Revised Slightly Upward – But Growth Rate Still Lower

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6월 2, 2011
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Econintersect: The Bureau of Labor Statistics (BLS) 1Q2011 GDP was revised slightly upward:

Nonfarm business sector labor productivity increased at a 1.8 percent annual rate during the first quarter of 2011, the U.S. Bureau of Labor Statistics reported today. The gain in productivity reflects increases of 3.2 percent in output and 1.4 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2010 to the first quarter of 2011, output increased 3.2 percent while hours rose 1.9 percent, yielding an increase in productivity of 1.3 percent. (See chart 1)

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers.


Econintersect reviewed 1Q2011 productivity (analysis here), and observed:

All the words we have been hearing about the lean and mean USA business sector are apparently being disproven in just one BLS release.    All trends point to a less good productivity picture.  Business seems to have returned to the business of the past.    A key to the projections of increased manufacturing in the U.S. is keyed on superior productivity.  The latest data raises the question of where productivity may be going.

The revised BLS productivity is so small that the original analysis stands.  This original analysis of productivity is supported by several graphs for the reader to get a feel of overall trends.

source: BLS

 

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