Productivity Down in First Quarter 2014

The U.S. Bureau of Labor Statistics (BLS) released its revised estimate of productivity and costs for the first quarter of 2014. According to this report productivity in the “Non-farm” sector fell drastically.  “The decrease in productivity was the largest since the first quarter of 2008 (-3.9 percent).”

Productivity is a measure of how much stuff is produced per hour of labor (not including farming).  It is “annualized” based on “seasonally adjusted” numbers.

Productivity Q1 2014

Due in part to the drastic drop in productivity, businesses suffered a massive increase in labor costs as they increased 5.7% on an annual basis.

Labor Costs

Manufacturing Productivity Up

Even though Non-farm productivity was down drastically (-3.5%) the decrease was limited to the “Business” sector with “manufacturing” productivity actually up 3.8% and it’s subset durable manufacturing up 4.1%.  Durable goods are things that do not wear out quickly such as household appliances, cars, consumer electronics, furniture, sports equipment, firearms, and toys.

Business sector output does not include government, non-profit institutions or private households but even so it makes up 76% of the entire Gross Domestic Product (GDP).

So although business productivity was down manufacturing productivity was actually up.

 

 

Can't find what you are looking for? Search our site below:

Custom Search

Today’s Headlines

Preparing for a Healthcare Job Interview

Looking for your first healthcare job is an exciting journey that may have a few bumps along the way. Although preparing and submitting a sleek resume is the … [Read More...]

New Unemployment Numbers- February

On Friday March 10th the U.S. Bureau of Labor Statistics released their Employment and Unemployment numbers for February 2017. The media was making a big deal … [Read More...]

Whose Unemployment Numbers are Right?

The Bureau of Labor Statistics (BLS) and the Gallup Survey people both generate numbers to help us understand the employment/unemployment situation. … [Read More...]

5 Digital Marketing Careers to Consider

You don’t need an insider to tell you that the world of digital marketing has been thriving for quite some time and that it will continue to do so in the … [Read More...]

Unemployment News

BLS Monthly Employment Report for April

The US economy added 160,000 "seasonally adjusted" jobs in April, the lowest figure in the last seven months. The adjusted U-3 unemployment rate remained steady at 5%. The Unadjusted U-3 fell to 4.7% while the … [Read More...]

More Posts from this Category

About Tim McMahon

Work by editor and author, Tim McMahon, has been featured in Bloomberg, CBS News, Wall Street Journal, Christian Science Monitor, Forbes, Washington Post, Drudge Report, The Atlantic, Business Insider, American Thinker, Lew Rockwell, Huffington Post, Rolling Stone, Oakland Press, Free Republic, Education World, Realty Trac, Reason, Coin News, and Council for Economic Education. Connect with Tim on Google+

Speak Your Mind

*