Members rudywoofs (Pam) Posted November 5, 2009 Members Posted November 5, 2009 Productivity gains may be bad news for job seekers By MARTIN CRUTSINGER and CHRISTOPHER S. RUGABER, AP Economics Writer – 52 mins ago November 5, 2009 WASHINGTON – Companies across the economy are finding ways to do more with fewer workers, dimming hopes that hiring will take off anytime soon. Employers became leaner and more efficient in the third quarter. Wages, meantime, remain flat or falling. The result is that productivity — output per hour of work — jumped at the fastest pace in six years. The good news for companies, though, may be bad news for the jobless. As long as companies can get their workers to produce more, they have little reason to hire — at least until consumer spending picks up. And the squeeze on incomes could depress consumer spending, putting the economic recovery at risk. Still, some economists were encouraged by the productivity report. They say that eventually, employers won't be able to squeeze more from their staffs. They will then have to ramp up hiring — something that could happen next year, even though the jobless rate is expected to hit double digits. rest of the story Quote Pam Meddle Not In the Affairs of Dragons; for You Are Crunchy and Taste Good with Ketchup. If we all sang the same note in the choir, there'd never be any harmony. Funny, isn't it, how we accept Grace for ourselves and demand justice for others?
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.