Productivity increased only 0.9 percent last year and declined an average of 1.1 percent in the first two quarters of this year.
Former Federal Reserve Chairman Alan Greenspan is concerned.
"Our productivity rate is slowing dramatically, causing slow growth in wages, and that's causing a lot of the problems in the economy over the long run," he told Fox Business Network.
"What concerns me most is that unless and until we can rectify that problem, our economy's long-term outlook is not good."
The September jobs report, released Friday, represents a "mixed" bag, Greenspan noted. Non-farm payrolls rose 248,000, and unemployment fell to a six-year low of 5.9 percent.
But the labor force participation rate dropped to a 36-year low of 62.7 percent. And average hourly earnings rose only 2 percent in the 12 months through September. Looking longer-term, wages have increased only 0.8 percent inflation-adjusted since December 2007.
Former Federal Reserve Chairman Alan Greenspan is concerned.
"Our productivity rate is slowing dramatically, causing slow growth in wages, and that's causing a lot of the problems in the economy over the long run," he told Fox Business Network.
"What concerns me most is that unless and until we can rectify that problem, our economy's long-term outlook is not good."
The September jobs report, released Friday, represents a "mixed" bag, Greenspan noted. Non-farm payrolls rose 248,000, and unemployment fell to a six-year low of 5.9 percent.
But the labor force participation rate dropped to a 36-year low of 62.7 percent. And average hourly earnings rose only 2 percent in the 12 months through September. Looking longer-term, wages have increased only 0.8 percent inflation-adjusted since December 2007.
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