Worker Productivity Jumps to High Levels
Americans are working harder and building it faster.
According to the Department of Labor, productivity among American workers jumped 5.3 percent in the second quarter. Combined with previous increases over the past year, productivity is rising at the fastest rate in 17 years.
The figure is determined by the amount of output per hour of work, and actually grew by almost four percent from the first quarter alone, where the increase was 1.9 percent.
What's the impact of these increases? Better living, according to analysts, who say that the average family is able to make ends meet on their wages without affecting the inflation rate. As a result, the Federal Reserve Bank probably will take into account the productivity rate when it considers any increase in interest rates.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.