Re:American workers proving they don't need to return to off...
by tonyedgecombe on Sunday December 10, 2023 @05:05AM
(#38590532)
>because unemployment rate/labor force participation rate hasn't been changing
Unemployment in the US has been falling for some time (apart from a brief spike in 2020).
https://www.statista.com/statistics/269959/employment-in-the...
You would expect this to have an effect on productivity as low value jobs are the ones most likely to be left unfilled.
The reason productivity is up so much lately is that for the past two years:
- Employment (https://fred.stlouisfed.org/series/PAYEMS) has been increasing at 1-2% annualized rate (because unemployment rate/labor force participation rate hasn't been changing, so employment growth has come from population growth, which was 1-2% when current 18-30 year-olds were born)
- Real GDP (https://fred.stlouisfed.org/series/GDPC1) has been increasing at 3-5% annualized rate
The reality is there is a giant consumption boom the past few years, but minimal increase in employment since we were already at full employment, so by definition there will just be increase in aggregate productivity. It is unrelated to concepts like how hard are people working.