Wednesday, June 04, 2008


Productivity goes up when output/labor hour goes up, which can happen if the numerator grows or the denominator falls. You can't squeeze more out of fewer workers forever, but you can short term.

WASHINGTON -- U.S. productivity rose sharply in the first quarter despite a weak economy, according to revised government data, suggesting companies have responded quickly to soft demand by shedding workers and cutting back on hours.