Productivity falls while labor costs increase

Economic Indicators Sep 05, 2010 No Comments

Productivity in the spring fell by the largest amount in nearly four years while labor costs rose, signals that companies may have reached the limits of squeezing more work out of fewer workers.

Productivity dropped at an annual rate of 1.8 percent in the April–to–June quarter, double the 0.9 percent decline originally reported a month ago, the Labor Department said Thursday. Unit labor costs rose 1.1 percent, the biggest rise in labor costs since late 2008.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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