Productivity Plunges
A Bloomberg poll of leading US economists found that 79% were “shocked” or “dismayed” by the recently-readjusted Bureau of Labor Statistics data showing that labor productivity in the United States plunged by 13.8% in 2010. Asked how they felt about the corresponding sharp decline in U3 unemployment – from 10.1% to 6.3% – 31% of these economists said improved employment numbers were “welcome”, but 88% considered the correlation (between falling productivity and falling unemployment) “counterintuitive” or “irrelevant”. All agreed that the top priority must be to return to increased productivity and healthy economic growth as rapidly as possible.


