Ignore the 1.3% annualised rebound in non-farm productivity in the second quarter, which barely reversed the 1.1% decline in the first quarter. The bigger story is the almost unprecedented weakness of productivity, not just since the recession but going all the way back to 2004 when the IT-related boost faded. Productivity increased by only 0.3% over the past 12 months and, following the incorporation of the recently revised GDP figures, the average annualised gain in productivity over the past five years was revised down to a pitiful 0.5%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services