Productivity surges and labor pressures ease

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) - Productivity was increasing at the end of last year at three times the expected pace while labor costs slowed significantly, underscoring that a deepening recession has taken away the threat of inflation.

The Labor Department said Thursday that productivity rose at an annual rate of 3.2 percent in the final three months of last year, far above the 1.1 percent rise that economists had expected. The increase was double the 1.5 percent rise in productivity in the third quarter.

Meanwhile, unit labor costs edged up at a 1.8 percent annual rate in fourth quarter, far lower than the 2.9 percent rise that had been forecast. Labor costs had risen at a 2.6 percent rate in the third quarter.

The big jump in productivity occurred in a quarter when overall economic activity, as measured by the gross domestic product, plunged at an annual rate of 3.8 percent, the biggest drop in a 26 years.

Read more: http://apnews.excite.com/article/20090205/D965ES9O0.html

[Xipe Totec]

1. And the peasants rejoiced

inflation - one less thing to worry about for the unemployed. :eyes:

[shraby]

2. And this is supposed to be good news???

A recession makes inflation less likely? My goodness, we are at the bottom of the barrel aren't we?

[catnhatnh]

3. Correct headline...

Workers quail while companies turn up the screws.....

[plantwomyn]

4. Another example of FEAR.

Work harder, faster, longer for less or loose your JOB. Fantastic news.