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Economic Perspectives
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 Quarterly Economics Discussion - Q4 2009 
An overview of economic conditions related to output, employment, housing, inflation, the value of the dollar and monetary policy.
 Alan Blinder's Economic Outlook - November 2009
Business Productivity Revised Upward to 6.9 Percent; Unit Labor Costs Fall 5.9 Percent
Labor productivity growth was revised upwards for the fourth quarter to 6.9 percent at a seasonally adjusted annualized rate. This compares to 6.2 percent growth previously reported. This was the third consecutive quarter where labor productivity grew at rates near or in excess of 7 percent. The gains occurred due to increasing output as firms also reduced their payrolls. Output rose 7.6 percent on an annualized basis compared to 7.2 percent previously reported. Before widespread hiring occurs, firms are seeking to increase output from their existing workforce. Though these past quarters of productivity growth are a positive for long term income growth, for the time being its reducing firms need to hire new workers and is helping to keep the unemployment rate up in the short run.
Labor cost per unit of output fell 5.9 percent. As productivity increases, there is no inflationary pressure occurring from the labor markets at this time.
|
(SAAR) % |
Q4 2009 |
Q3 2009 |
Q2 2009 |
Q1 2009 |
Q4 2008 |
Q3 2008 |
|
Output Per Hour |
6.9 |
7.8 |
7.6 |
0.9 |
2.2 |
1.1 |
|
Compensation Per Hour |
0.6 |
-0.4 |
7.7 |
-4.2 |
4.5 |
6.0 |
|
Unit Labor Costs |
-5.9 |
-7.6 |
0.1 |
-5.0 |
2.2 |
4.9 |
10.03.04 (Source: Bureau of Labor Statistics)
Questions? Please contact Eric Brescia for more information.
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