There are some days when job news is just — how shall we put this? — a bit bland. We admit, this post is one of ‘em.
According to the Labor Department, worker productivity increased by 1.6 percent from April through June.
So, how is productivity determined, you ask? According to USA Today, the Labor Department classifies it as the amount of output per hour worked. An increased productivity could be assessed one of two ways: First, it could show an increased workload and thereby eventually demonstrate a need to hire more employees due to an increased workload.
As for the other side of the coin, it could slow job creation because employers are getting more bang for their buck out of current employees.
Erik Johnson, an economist at IHS Global Insight, told the newspaper, ”In the near term, is unlikely that firms will be able to increase output much further without proportional increases in hiring.”
He added, “Maxing out the efficiency of their existing workforces would typically encourage firms to hire more workers.”