The annual rate shows the largest drop on record.
The Labor Department reported Tuesday that U.S. worker productivity fell sharply in the second quarter. On an annualized basis, it posted a record decline.
Non-farm productivity, which measures hourly output per worker, fell by 4.6 percent last quarter. The decline was a bit greater than economists had expected in the April-June period.
Productivity fell at a 2.5 percent pace from a year ago.
Large shifts in the composition of the workforce in the wake of the COVID-19 pandemic have made it more difficult to measure underlying productivity growth which some economists put at about 1.6 percent or less, making the Federal Reserve’s fight against inflation harder.
As the Lord Leads, Pray with Us…
- For members of the Federal Reserve as they attempt to slow inflation.
- For Secretary Walsh to look to God for wisdom as he heads the Labor Department.
- For the president’s administration to seek discerning counsel regarding the economy and domestic productivity.
Sources: Reuters, Wall Street Journal, Newsmax
