Americans are Less Productive and Better Compensated Than We Thought
Revised data from the Bureau of Labor Statistics tell a different story.
The Bureau of Labor Statistics revised its fourth-quarter figuresfor productivity—economic output divided by hours worked—indicating Americans weren’t as productive as they looked at first blush. In fact, the numbers were a letdown versus the initial estimates for the entire second half of 2014.
But the news from the BLS today is better than it sounds. Although output got revised down, compensation is rising faster than previously thought.
And since sluggish wages have been such a sticking point for Federal Reserve chair Janet Yellen, this arguably is another sign that the recovery is finally getting felt in more distant corners of the economy.
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