The economic downturn has spurred one of the largest American productivity spikes in years.
In the long-term this is undoubtedly positive, but in the short term, massively more productive Americans means that companies can delay hiring for longer.
Washington Post: Fein Tool North America, a Cincinnati company that supplies auto parts manufacturers, has cut about 100 workers, or 33 per cent of its staff. But Fein President Ralph Hardt said the company can still fill its orders by using more overtime shifts and temporary workers.
Productivity, the amount of output per hour worked, jumped 9.5 per cent in the third quarter, the labour Department said Thursday.
That’s the sharpest increase in six years and followed a 6.6 per cent rise in the second quarter. The increases enable companies to produce more without hiring extra workers.