CTH puts released economic data into ‘what does it mean‘ terms as a conversational priority. The Bureau of Labor and Statistics (BLS) releases the first quarter productivity and costs report today [BLS Data Here].
Outputs, what was created, dropped 2.4 percent, yet labor hours used to create those outputs increased 5.5 percent. This creates a productivity drop of 7.5% for the overall business. The largest quarterly drop in productivity since 1947.
This is a warning indicator inside the economy to employees of large organizations. CTH has been tracking productivity for quite a while, and the signs have all looked foreboding. {Go Deep} Businesses cannot afford to keep employees on payroll if customer demand drops.
The per unit labor cost to make the products has increased 11.6%. Wages have gone up 3.2% (pay increases) and productivity has dropped 7.5%, combined that creates the 11.6% increase in per unit cost to producers.
I have often used the example of making bread {Go Deep}. If you are making 10 loaves of bread, there is a set amount of cost associated with each loaf created. The total cost of each loaf is the total cost to produce the entire batch divided by ten. more
Instead of planning a recovery from Covid, the Biden regime is busy pushing their extreme agenda.
The “Bolchevik Dem☭kkkratic Party” hasn’t even taken complete control of America and they’re already running out of other peoples money!
The labor force is on slow down strike. The Democrats promised higher pay for everyone. Then the Democrats raised the cost of living and now labor is unhappy. This is how Russia fell into disarray.
You don’t say?
Nick GDP Cage