US Manufacturing Worker Productivity Crashes Most In 8 Years

Tyler Durden's picture

US worker productivity rose at 3.0% QoQ in Q3 - the best since 2014.

Unit labor costs rose at 0.5% annualized rate in Q3 (est. 0.4%) following 0.3% pace in Q2.

Output rose at a 3.8 percent rate following 3.9 percent.

Hours worked rose at a 0.8 percent pace after 2.4 percent.

The latest figure compares with a 1.2 percent average over the period spanning 2007 to 2016. Weak productivity helps explain why companies are reluctant to raise workers’ wages, even as profit margins have improved.

However, among manufacturers, productivity crashed 5% QoQ - the biggest drop since Q1 2009, when the economy was in recession - after rising 3.4% in Q2.

Let's hope that is storm-related.

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LawsofPhysics's picture

Again, productivity can vary, what is more important is what you are actually producing...

Perhaps I can interest you in a financial "product"...?


"Full Faith and Credit"

MozartIII's picture

The robots are getting lazy.

Iconoclast421's picture

This is good for 200 more on the DOW.

FreeShitter's picture

And this too shall be bullish

spastic_colon's picture

the yellen sendoff/powell inaugaration is getting better and better....dont forget jobless claims lol

wisehiney's picture

I so well remember.

When a team of Red Hot Rebel Rockers.

Could run any business that you could think of.

With one fifth of the dead ass crew that you see now.

Cogs in the fucking wheel.

We would hustle and laugh and make the days seem so short.

Time flies when you are hustling.

And pleasing hell out of every customer.

And being highly and technically proficient.

Happy to make the boss a buck.

Because we believed that we would be boss hawg one day.

And we all did become.

Because we believed.

Fuck socialists.

Kill their bad seed.

Nip their bad bud.

Eradicate their poison.

Kreditanstalt's picture

Why "let's hope"? 

The US is about the most unproductive nation on earth if measured by profitably-sold output against total population subtracting for decades of expansion of the money and credit supply.  Stats should reflect that.

Number 9's picture

people call crypto tulips while still recognizing the rigged markets.. is this not the definition of cognitive dissonance?

XBroker1's picture

The 'free' market can still function w/o  the internets .

BigWillyStyle887's picture

Oh Nos!!!!! But what abouts muh great recovery!?!!? What about the booming economy?!?!?!? What about muh record all time high super awesome stock market?!?!?!?! What abouts muh super duper de-regulation of the economy!?!?! What about muh elimination of entire government departments!?!?!?!?

MuffDiver69's picture

It’s almost like two of the most productive states were hit by Hurricanes during the quarter..Nah..Sorta lines up with employment at that time..Nah..

A. Boaty's picture

In USSA we pretend to work, they pretend to pay us.

chilller's picture

Most don't realize "Productivity" means how much more can the company >squeeeze< outta their employees for same or less money....and like any financial metric....growth is the only option. The employee abuse from coroprations in the name of "Productivity" is just that...abuse.

alpha-protagonist's picture

Maybe if they just protest more at work, things will get better. Well, for AI and robotics anyway...

Ron_Mexico's picture

If it hadn't been for Cotton Eyed Joe

I'd have been married a long time ago.

ted41776's picture

my productivity would be much higher if i got paid in gold

Rex Andrus's picture

As all the job creation has gone to 3rd world immigrants for a decade, why does it surprise you that you get 3rd world results? These numbers are great considering they can barely communicate outside their colonies. Welcome to Walmart scro. Fuck you. I'm eating.

StreetObserver's picture

When real wages go up, then maybe employees will produce more. They haven't gotten a real inflation based raise in the last 40 years as productivity has doubled in some industries.

Falling Down's picture

By the 90's, some CNC machine tools were replacing upwards of 5 or 6 employees. I'll bet some of the equipment I've run in recent years replaced 10 or more employees, say in a 3 shift operation.

Then you have "lights-out" machining, with either bar feeder lathes or multiple-pallet horizontal mills. I recommend it for only certain types of parts and operations, but lights-out can account for upwards of 10% or 20% of a company's machine time.