It's not a recovery if it's jobless; Productivity is a false indicator

[srpantalonas]

Productivity measures output per employee. So let's say you have 2000 employees overall, half in assembly, the other in parts. Well, Wall Street now likes "productivity" gains, because revenue and profits are not increasing because the economy is so flat. So you--a very well-paid CEO--decide to increase productivity, and squeeze more output per employee out of the equation.

To do this easily, you lay off 1000 people, source the parts to China (which has artificially low prices), and now you have 1000 employees left, the same output, but you've doubled your productivity. Neat, huh?

Jobless Recovery: it's not a recovery if it's jobless. We need to stop framing the economy in terms of output and start framing in terms of people, quality of life, and the strength of our communities. Increases in productivity at the expense of our communities and laid-off workers is nothing to be celebrated. It's time to reframe the discussion, start a new conversation.

http://www.charliecrystle.com

[leyton]

1. This is the key.

Spot on. Too many jobs are being outsourced - especially in my area (NC) where textile plants are closing. I'm not an economist, but I question whether a country of 280 million people can survive more loss of industrial jobs. A service economy may mean a higher per capita income or whatever, but it seems to me that an industrial base is necessary. If this shrinks, that's... not good.

Jobs are, IMO, the key to winning the election next year.

[Lefty48197]

2. "Jobless Recovery"

is Republican-speak for, "I'm making money, but you aren't".