WASHINGTON — U.S. workers were less productive in the spring for the second quarter in a row, a trend that may not bode well for future hiring.
Productivity dropped 0.3 percent in the April-June quarter, following a decline of 0.6 percent in the first three months of the year, the Labor Department said Tuesday. It was the first back-to-back decline in productivity since the second half of 2008.
The drop in productivity helped push unit labor costs up 2.2 percent. That follows a 4.8 percent rise in labor costs in the first three months of this year, the biggest increase since the last three months of 2008.
Rising labor costs reduce corporate profits. Labor represents the largest expense for most companies. And when workers are less productive and cost more, companies are less likely to add jobs.
3 comments:
Our productivity must increase , we have to support 24,000,000 mexicans and 30,000,000 african americans on welfare and food stamps.
I know I was.....no job!
baseball hot dogs apple pie and apathy poopoo the unions but why would anyone work for anything but a true living wage small businesses and minimum wages are fine for the owners but gift and cupcake shops are not going provide living wages to people with families............as far as small businesses are concerned let Ma and Pop do the work or STFU...........don't pretend your doing anyone any favors being conservative and petty cheap
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