This is the first time the rate has been below 3 percent since the final months of 2002. The slowdown notwithstanding, U.S. labor productivity—measured as output per hour worked—has risen for 14 consecutive quarters, that is, more than three years. The rate shot up especially in 2002 and 2003.

The increase in labor productivity is the result of speed-up and stretching the workday. Many companies have maintained or increased production levels while cutting the workforce. This is especially true in manufacturing, where productivity grew in the first three quarters of the year by 6.9 percent, 8.3 percent, and 4.6 percent, respectively. Workers in factories, mines, and mills feel the result on their bodies as on-the-job injuries rise and the workweek is lengthened.

Total hours worked, for example, jumped 2.1 percent in the July-September period, after a 0.3 percent increase the previous quarter.

At the same time, joblessness persists at steady levels. According to Bloomberg News, unemployment was expected to remain at 5.4 percent in October, even though 175,000 new jobs were created that month—the most in five months.

“By producing more with less, companies have been able to avoid hiring many new workers, a critical reason for the slow job growth that has characterized the economic recovery,” said an article in the November 5 Wall Street Journal.

Meanwhile, real wages—that is, hourly pay adjusted for inflation—continued a slow but steady decline the first half of the year, falling 0.4 percent and 1 percent the first and second quarters of this year, respectively.

All this has meant higher profit margins for many employers. Profits of corporations in the Standard and Poor’s 500, for example, are forecast to rise 19 percent this year, according to the New York Times.

If the slowdown in the growth of labor productivity continues, employers may be forced to increase hiring to meet rising orders, the Times and other big-business dailies said. This may result in lower unemployment and somewhat higher wages, as workers feel more confident to demand livable pay while competition among the bosses for labor power rises.

Real wages inched upward by 2 percent between July and September, according to the Bureau of Labor Statistics.  
 
 
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