Question

Based on the bureau of labor statistics - what is the growth rate of labor productivity(output per hour) in U S. Manufacturing Sector for the past ten years?

Answer 1

The great recession of 2007 was one of the worst recessions in American history. But since then output has been increasing due to increase in technology, skill development and capital.

Labor productivity is increasing which is one of the factors affecting output. Labor productivity has been increasing since 2007, but how much is it increasing.

According to the data based on the bureau of labou statistics, labor productivity has been increasing at a very low rate. The average growth rate of labor productivity is 1.1%.

The growth rate is very low compared what is needed. Hours too has low growth rate of 0.3%.

There is a huge gap between average growth rate of output and average growth rate of labor productivity.