posted on March 6, 2007 02:31:36 PM new
March 6, 2007, 8:13AM
Worker productivity manages small increase while wages soar
By MARTIN CRUTSINGER
Associated Press
WASHINGTON — The efficiency of workers rose at a modest pace in the final three months of last year, far below the gain originally estimated, while worker wages and benefits soared.
The Labor Department reported today that productivity, the amount of output per hour of work, rose at an annual rate of 1.6 percent in the October-December period last year, about half of the 3 percent increase the government initially estimated a month ago.
The report showed that labor costs for each unit of output soared by 6.6 percent, far higher than the 1.7 percent increase initially reported. The combination of lower productivity and higher wages, if sustained, would raise alarm bells at the Federal Reserve about inflation.
The 6.6 percent surge in labor costs was far higher than the 3.2 percent rise that Wall Street had been expecting while the 1.6 productivity increase was in line with expectations.
The big revision in productivity reflected the big downward revision announced last week in total economic growth, as measured by the gross domestic product. The GDP expanded at a sluggish 2.2 percent annual rate from October through December, not the 3.5 percent growth rate originally reported.
With less output and the number of hours worked remaining the same, productivity for the quarter looked worse. The drop in output also meant that unit labor costs were higher.
It was the biggest quarterly increase in labor costs since a 9.1 percent surge in the first three months of 2006. Both gains were attributed in large part to big bonuses paid to high-income workers.
The Federal Reserve is closely monitoring productivity and labor costs to make sure that inflation pressures do not begin rising on a sustained basis.
Productivity is the key element needed for rising living standards. It allows businesses to pay workers with the wage gains financed by the increased output. Without productivity gains, businesses often have to resort to boosting the cost of their products to finance wage gains, a process that increases inflation.
Beginning in 1973, productivity slowed dramatically as the country went through a period of high inflation, triggered by a series of oil shocks.
However, beginning in 1995, productivity started to show much better gains as the economy benefited from the revolution in information technology.
For the year, productivity rose by 1.6 percent in 2006, the slowest annual increase in nine years.
It is foolish and wrong to mourn the men who died. Rather we should thank God that such men lived.George S. Patton
posted on March 6, 2007 03:01:04 PM new
Bear posted this like its some kind of good news for the average American worker. LOL
Bear said,"It was the biggest quarterly increase in labor costs since a 9.1 percent surge in the first three months of 2006. Both gains were attributed in large part to big bonuses paid to high-income workers"
The average American will make gains in the next 2 years because of the 110th Democratic Congress. The real good news and big gains will after in 2008 elections.
That's when America kicks out what is left of republican lawmakers along with a failed President who are blocking big gains for the average American.
posted on March 8, 2007 07:11:48 PM new
How about this for an answer eunuch.
Net worth of U.S. households skyrockets
By JEANNINE AVERSA, AP Economics Writer Thu Mar 8, 5:27 PM ET
WASHINGTON - The net worth of U.S. households climbed to a record high in the final quarter of last year, boosted mostly by gains on stocks, the
Federal Reserve reported Thursday.
Net worth — the difference between households' total assets, such as houses and bank accounts, and their total liabilities, such as mortgages and credit card debt, totaled $55.6 trillion in the October-to-December quarter.
That marked a 2.5 percent growth rate from the third quarter, the previous quarterly record high. Stocks gains helped fuel the increase in net worth, although real-estate gains played a role, too.
For all of last year, households' net worth rose by 7.4 percent, a slower pace than the 7.9 percent increase registered in 2005.
Household debt, meanwhile, grew by 8.6 percent in 2006, down from a 11.7 percent increase in the prior year. The Fed said this deceleration "was accounted for by much slower growth of home mortgage debt."
Home mortgage debt growth slowed to a 8.9 percent last year, compared with a 13.8 percent increase in 2005. This year's growth in home mortgage debt was the smallest increase in six years.
After a five-year boom, the housing market fell into a deep slump last year. Sales cooled. So did home prices, which had been galloping ahead, making consumers feel more wealthy and more inclined to spend.
Economists said Thursday's report suggest households' finances are holding up fairly well to any strains caused by the troubled housing market and well as some sluggishness in overall economic growth. Analysts said that's because the jobs climate remains in good shape and income growth has picked up.
"Slower growth in some of the nation's high-flying housing markets was not enough to send net worth south in the fourth quarter," said Gina Martin, economist at Wachovia. "Instead, household balance sheets continued to improve, as growth in liabilities continued to slow, while growth in assets held steady."
One risk facing the economy is that the housing slump will take an unexpected turn for the worse, a development that likely would cause consumers to clamp down. That could spell trouble for overall economic activity.
It is foolish and wrong to mourn the men who died. Rather we should thank God that such men lived.George S. Patton
posted on March 9, 2007 03:24:25 AM new
Bear,
As always your to much of a coward with nothing to back up your empty words to answer a question. Simply put you are just a CHUMP and a waste of peoples time.
posted on March 10, 2007 02:16:41 PM new
mingo, thank you for your answer to the CHUMP. While I was away you said what this CHUMP and his step mother don't want to admit.
mingo said,"""Both gains were attributed in large part to big bonuses paid to high-income workers."""
Hey CHUMP, what I contribute is exposing your and your step mother's twisted truths and BOLD FACE LIES.
The truth is you now have failed new-con leaders of the failed new-con form of government you and your step mother supported.
Bush can't go almost anywhere that people aren't protesting his being there. The damage Bush has done to America will take years to undo.
An example of your twisted truths is your "WAGES SOAR" post CHUMP.
But post on CHUMP and stick to your guns you just might make it someday if the laws don't change on ya.
posted on March 10, 2007 02:31:22 PM new
Bigpeepa, They lie (what else) about you being a laughing stock on other boards ...you're not, but linduh ????
posted on March 10, 2007 03:04:38 PM new
Bigpeepa, those must be the boards that Linda_K and the gutless little cowards run to so they can blah blah about others behind their backs.
I have lived a long time and have never run across a more proficient liar than LIAR_K. Of course I have never and would ever hang around new-cons anyway maybe that's why.
That brain of hers is just one big scrambled mess.
I think your right about the coward new-cons going to other boards. They need boards with people of like (twisted) minds to recoup from the beatings they get here.
"Worker productivity up, WAGES SOAR."
Anyone that believes that call me I got an antique bridge here in Pittsburgh to sell ya.
posted on March 10, 2007 05:03:23 PM new
Bigpeepa, I'm reminded of the time linduh , on OTWA, raged at a gay poster to "confess" his great crime of being gay(eye-roll). Well, let me tell ya , it was hilarious...that guy was openly gay and linduh made a huge fool of herself by insisting over and over again that he admit it...other posters even told her that everyone knew it (and didn't care)...but she was in such a heat of hate that she just didn't "get it" ! She just raged on and on and was determined to make him "confess".....laughed til I cried!
What a fool she made of herself....and , of course, she'll deny it, but the OTWA records have it.....
