Employers are succeeding in upping production despite not adding any new jobs begging the question when new hires will become a necessity.
Productivity was on the rise between October and December, as employers demanded more of their current employees. Reflecting this, the number of initial claims for unemployment claims rose again as the rate hovers at 10.1 percent. Thursday reports from the Labor Department indicate that corporations are still in recession mode and will continue to delay hiring.
Employers are largely unconvinced that the economy can sustain itself particularly with government stimulus measures coming to an end.
Fourth quarter productivity rose by 6.2 percent exceeding analysts' expectations of a 6 percent. This marks the third consecutive quarter of gains in productivity, as jobs remain elusive.
Rising productivity at the close of a recession before new people are hired is a regular trend but the economic recovery is put at risk when so many people remain unemployed.
Labor expenses declined 4.4 percent, keeping with a four quarter trend and amplifying profits.
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