Sentences with phrase «labor productivity growth»

The explanation for the disparate growth rates can be partially traced to uninspiring labor productivity growth.

The explanation for the disparate growth rates can partially be traced to uninspiring labor productivity growth.

«Despite meager inflation growth, the Federal Reserve decided to raise rates 0.25 percent, which is likely attributed to future inflation concerns over: a tightening labor market; limited labor productivity growth; and the Congressional Budget Office projecting large deficits due to the Republican tax plan,» said Joseph Kirchner, senior economist at realtor.com ®, in a statement.

Improved management and automation enables production with fewer people Falling need for labor inputs means that labor force and labor productivity growth are not the constraints on production growth they once were.

Not exact matches

Whatever the reason for the elevated slack in the U.S. labor market, one obvious solution would be faster economic, productivity, and wage growth.

(The recent slowdown in productivity could arguably be because of the low cost of labor and, therefore, reduced incentives to invest in capital and would likely rebound as labor markets get genuinely tight and start pushing wage - growth up.)

Chart 5 below highlights that despite its well - known productivity growth, unit labor costs are on the rise as wage growth has outpaced that of productivity.

Airline workers also work much harder than they did in the past; the industry had the second highest multifactor productivity growth from 1997 through 2014, according to an analysis by the Bureau of Labor Statistics.

The trend worries economists because new businesses play a vital role in creating jobs, improving productivity and spurring economic growth; some researchers believe the decline in entrepreneurship, and in other measures of economic dynamism such as labor mobility, could be part of the reason the U.S. has experienced such a slow bounceback from the past two recessions.

Based on estimates of labor force and productivity growth at the time, if you asked a standard - issue macroeconomist back then where real GDP would be today, this is the line she would have showed you.

By 2015, analysts had significantly marked down GDP growth, based on the fact that the labor force had contracted more than they thought back in 2007 and productivity growth was slower.

In addition, unit labor costs have declined sharply over the past year due to the combination of unusually rapid productivity growth and slowing labor compensation growth (Chart 28).

Potential economic growth is going to slow dramatically over the coming years because of slowing growth in the labor force, due to growing demographic trends, and continued poor productivity performance.

Allowing wages to continue to rise should, in the longer run, boost productivity growth because businesses will be incentivized to find ways to improve the productivity of their workers in the face of tighter labor markets and higher labor costs.

The variable you want to look to evaluate that possibility is the growth in unit labor costs, which tells you how fast compensation is growing relative to productivity.

In other words, rather than productivity advances being the cause of higher real wages, the reverse may be true: Higher labor costs that crimp the profits share and boost the labor share are a necessary condition for higher investment rates which in turn will lead to higher productivity growth.

«Import growth captures both the «true» part of productivity growth (since increased capital investment typically requires an expanding current account deficit) as well as the illusory part of productivity growth (resulting from the failure to account for foreign labor input in the productivity numbers).

As I detailed in my November 2003 comment, titled The U.S. Productivity Miracle (Made in China), part of U.S. productivity growth actually represents the import of foreign labor by U.S. multinational companies.

Since the 1940's, the 8 - year growth rate of U.S. labor force productivity has rarely exceeded 3 %, and the recent trend has been progressively lower.

While the assumptions about the future unemployment rate may be affected by policy, the fact is that slower U.S. population growth, coupled with an aging population, place substantial limits on labor force growth, which will leave U.S. GDP growth almost entirely dependent on changes in productivity.

At a 4.1 % unemployment rate and labor force growth now down to about 0.5 %, the baseline expectation for real GDP growth in the coming years is approaching just 1 % (0.5 % labor force growth plus productivity growth of about 0.5 % annually).

«The only way to get to 3 percent growth on a sustained basis is faster growth of the labor force or faster growth of productivity.

Nominal interest rates are driven by real growth (labor and labor productivity), inflation and the term premium.

If successful, growth in labor, capital and technology in tandem can power productivity and industrial output in ways that are simply not possible in Reform Club peers such as Japan, South Korea and China.

Per the BBVA Research Department, the potential long run GDP growth trend should revert to around 2 % -2.2 % based on expectations for labor (major factor being U.S. demographics, i.e. aging of the population), capital growth, and productivity.

Economy is the broadest category and was designed to measure each state's productivity, growth potential and labor market.

They have also made some progress in improving their international competitiveness, though there remains an opportunity for further structural reforms in labor and product markets — and not just in the periphery — to increase productivity and strengthen long term growth prospects.

The second is that for the attainment of growth the primary productivity required is that of labor.

It is committed to an industrial - market - system that solves its problems by growth based on increasing the productivity of labor.

It is by specialization that productivity is increased; and economic growth depends on productivity, that is, the amount produced per hour of labor.

«Our study suggests that the effect of human capital on economic growth is larger in high - quality - of - life counties — natural amenities such as clean air and temperate climate, could potentially attract human capital and perhaps increase labor productivity, thus boosting the effect of human capital on growth,» said Fan.

Whereas 23 years in 40 countries provides a relatively large data set, it does not exclude other possible explanations, such as violent crime increasing with temperature rise, a drop in farm labor productivity or population growth.

Indeed, in countries with labor parties in Europe today, it is not unusual for the labor party, when in power, to put a brake on wage growth in order to forestall inflation, or to resist calls for more benefits when productivity growth does not justify increased benefits.

Economic growth can be boiled down to two factors: growth in working - age population and growth in labor force productivity.

They have since dropped to around 8.5 % because the labor market has tightened, wages have begun to rise while productivity growth has remained slow.

Since the recession we have seen lackluster gains in labor productivity, a major driver of GDP growth.

The subpar growth reflects weak productivity growth, which has averaged less than 1 % over the past five years, and a low rate of labor force participation that remains at levels last seen in the 1970s.

In a report issued from the Congressional Budget Office (CBO) in January, average GDP growth was projected to be less than 2 % per year between 2017 and 2020 due to sluggish growth in the labor force of 0.5 % and productivity growth of less than 1.5 % per year.

Demographics patterns in the U.S. today do not support strong gains in the working age population and labor force without changes in immigration rates, while productivity growth has been stubbornly weak.

The Congressional Budget Office (CBO) estimates that during the 1950 — 1973 period, the labor force grew 1.6 % per year, while labor productivity grew at a strong 2.4 % rate, resulting in overall potential growth of 4 % annually.

In a report issued by the Congressional Budget Office (CBO) in January, average GDP growth was projected to be less than 2.0 percent per year between 2017 and 2020 due to sluggish growth in the labor force of 0.5 percent and productivity growth of less than 1.5 percent per year.

By definition, output growth is the sum of productivity growth and labor force growth.

So either productivity growth has to accelerate from today's low levels or the labor force has to expand at a more rapid rate.