Page 24 - ARUBA TODAY

Thursday 10 augusT 2017 BUSINESS
A24

US productivity rose 0.9% rate in spring

By MARTIN CRUTSINGER
AP Economics Writer
WASHINGTON (AP) — The
productivity of American
workers rose just modestly
in the spring, extending a
worrisome issue that has
persisted throughout this
expansion.
Productivity grew at an
annual rate of 0.9 percent
in the April-June quar-
ter, slightly better than a
scant 0.1 percent rate of
increase in the first quarter,
the Labor Department re-
ported Wednesday. Labor Men work on a street in downtown Boston. On Wednesday, Aug.
costs edged up at a 0.6 9, 2017, the Labor Department released second quarter produc-
percent rate in the second tivity data. (AP Photo/Elise Amendola)
quarter, a sharp slowdown
from a 5.4 percent growth gain evaporated as part Since 2007, annual pro-
rate in the first quarter. of the government’s an- ductivity increases have
Productivity, the amount nual benchmark data revi- averaged just 1.2 percent.
of output per hour of work, sions. It marked the first an- That’s less than half the av-
has been weak throughout nual decline in productivity erage annual gains of 2.6
the economic recovery, since a 1 percent drop in percent logged in 2000 to
now in its ninth year. Many 1982. 2007, when the country was
analysts say the issue is the The small improvement benefiting from increased
biggest economic chal- in the second quarter re- efficiency from comput-
lenge facing the country. flected the fact that over- ers and the internet in the
For 2016 overall, produc- all economic growth, as workplace.
tivity actually declined measured by the gross do- Rising productivity means
— the first fall in 34 years. mestic product, acceler- increased output for each
Productivity last year had ated to a 2.6 percent rate hour of work, which allows
previously been reported of increase compared to a employers to boost wages
as a slight increase of 0.2 1.2 percent gain in the first without triggering higher
percent. However, that quarter. inflation.q