Paltry Productivity

Q1/16 non-farm labor productivity growth fell at a seasonally-adjusted annualized rate of -1%; Y-o-Y productivity growth rose just 0.6%. Since the end of the recession in 6/09, productivity growth has averaged a dismal 1.3%. These weak numbers help explain how millions of workers have found employment, yet GDP growth remains very weak. From 1990 through 2007, productivity growth was 2.3%, nearly double the rate since mid-2009. Very troubling.