Labor Costs Slump In Q2, Revisions Send 2016 Productvity To Biggest Drop In 34 Years

US non-farm productivity rose 0.9% QoQ in Q2, slightly better than the 0.7% growth expected and a notable bounce off the ‘zero’ in Q1.This rebound was largely due to disappointment in the growth of unit labor costs (which rose just 0.6% in Q2), but saw an outrageous upward revision in Q1 (from +2.2% to +5.4% QoQ).

And while there was no market reaction to the data, the most surprising facet in today’s productivity and labor cost report was not the latest, Q2, data which came in slightly stronger than expected on productivity at 0.9% vs the 0.7% expected, and slightly weaker on labor costs at 0.6%, half the 1.2% expected, but the dramatic revisions to the prior quarter data, which pushed Q1 labor costs from 2.2% to a whopping 5.4%, even as productivity remained relatively subdued at -0.1%, down from the original 0.0%.

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Look behind the numbers. Propaganda to maintain financial “growth” is not dependent on party lines.

David DeGerolamo

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Average Joe
Average Joe
7 years ago

Just about any fool can buy new things on debt, giving the illusion of prosperity. So when the people slave under the endless creation of it, one can expect short term gain at the cost of long term liberty.

Y’all have a nice day.