US Manufacturing Worker Productivity Crashes Most In 8 Years

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.

Comments

LawsofPhysics Thu, 11/02/2017 - 08:45 Permalink

Again, productivity can vary, what is more important is what you are actually producing...Perhaps I can interest you in a financial "product"...?LOL!"Full Faith and Credit"

wisehiney Thu, 11/02/2017 - 08:52 Permalink

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 Thu, 11/02/2017 - 08:54 Permalink

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.

BigWillyStyle887 Thu, 11/02/2017 - 09:19 Permalink

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 Thu, 11/02/2017 - 09:30 Permalink

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..

chilller Thu, 11/02/2017 - 10:30 Permalink

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.

Rex Andrus Thu, 11/02/2017 - 12:22 Permalink

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 Thu, 11/02/2017 - 13:45 Permalink

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 StreetObserver Thu, 11/02/2017 - 18:55 Permalink

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.

In reply to by StreetObserver