Wednesday, 29 January 2014

Growth yes but productivity has fallen

You would think that economic growth would be accompanied by increased productivity. This has been the case in all previous recoveries from recession. Output per man hour worked increases. But this time the government wants us to believe we are well on the way to recovery. We need to be cautious.

Unemployment is falling. More people are in work. But more people are working part-time on low wages. More people are working for wages that don't meet the cost of living. Furthermore, output per man hour worked is falling and not rising. Productivity is falling. This should ring alarm bells for the government and provides ample room for Labour's attack on rising living costs.

The percentage of workers working part time has increased as has the percentage with more than one job. These are signs of a changed economy and a changed workforce. 






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