Jobs: Productivity

We've said in the past that many of the nearly 8 million jobs lost since this recession began are never coming back due to increases in productivity.  Simply stated advances in technology have made it so that one or two people can do the work of four to five in the past.  24/7 Wall Street highlighted this trend today after reviewing the latest Bureau of Labor Statistics {BLS} report.

Although productivity is not rising at the rate it did in the first quarter, the increase is still too “hot” to help employment. According to the BLS: 

“Nonfarm business sector labor productivity increased at a 3.6% annual rate during the first quarter of 2010, the U.S. Bureau of Labor Statistics reported, with output rising 4.4% and hours worked rising .8%.”

It was hoped that the rate would level out, which would probably indicate that employers would have to increase hiring to improve their ability to handle a rising demand goods and services. As it is, the workforce appears to be ”working harder” to remain employed. Looking for new jobs is nearly impossible as the ratio of job seekers to open jobs is 5.5 to 1.

Link: Jobs & Productivity.