Thursday, May 6, 2010

Productivity still strong

Few metrics send more conflicting messages than "labor productivity."  It sounds great on the surface, but it really means "jobless recovery."

The BLS released preliminary q1 estimates for labor productivity, and it was strong at a 3.6% increase over last year.  The growth did decelerate from recent quarters, but that should be expected as the benefits from Cash for Clunkers, the homebuyer tax credit, and huge inventory re-stocking from unsustainably low levels slows down.

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