wage repression

Labor Productivity Soars While Real Wages Languish in Q3 2013

The BLS Productivity & Costs report for Q3 2013 shows labor productivity increased a whopping annualized 3.0%.   This is the largest increase in productivity since Q4 2009.  Output increased 4.7% and hours worked increased 1.7%.  Unit Labor costs dropped by -1.4% in Q3 2013.  The reason labor productivity surged was increased economic output while worker hours did not increase as much.

Productivity & Costs for Q1 2013 Shows Biggest Wage Decline on Record

The Q1 2013 Productivity & Costs revision shows labor productivity increased an annualized 0.5%.   Output increased 2.1% and hours worked increased 1.6%.  Hourly compensation dropped -3.8% in Q1 2013.  This is the largest quarterly decline for wages in history.  Between the numbers lies even more bad news for workers.  Labor is simply getting squeezed to death as workers created more while being paid less.  This quarterly report also shows there is no worker shortage for compensation would surely rise if demand for workers exceeded supply.