Q2 Productivity
Q2 Productivity +1.1% vs prior +4.3% ; Full Report
Inside the number: unit labor costs +4.2% vs prior +2.5%; YOY +3.2%, the fastest pace since Q4 2000.
The implicit price deflator for the business sector, which reflects changes in both unit labor costs and unit nonlabor payments, Q2 +3.1%; Q1 +2.7%.
The drop in productivity gain; rise in labor costs; and increase in the price deflator raises concerns that inflationary pressure cannot be contained.
These numbers are confirming our suspicion that we have hit a Malthusian impasse, (where no further meaningful gains in productivity can be had from existing workflow technology) and that outsourcing has run its course in reduction of labor costs.
Inside the number: unit labor costs +4.2% vs prior +2.5%; YOY +3.2%, the fastest pace since Q4 2000.
The implicit price deflator for the business sector, which reflects changes in both unit labor costs and unit nonlabor payments, Q2 +3.1%; Q1 +2.7%.
The drop in productivity gain; rise in labor costs; and increase in the price deflator raises concerns that inflationary pressure cannot be contained.
These numbers are confirming our suspicion that we have hit a Malthusian impasse, (where no further meaningful gains in productivity can be had from existing workflow technology) and that outsourcing has run its course in reduction of labor costs.
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