Productivity Is Roaring Back: Numbers Are up

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The pandemic distorted the economy in many ways, including derailing the productivity boom that we’d been expecting would characterize this decade-our Roaring 2020s scenario. That boom now may be back on track; productivity growth was well above the historical average during the past three quarters. If so, the ramifications for economic growth would be profound, as GDP growth is a function of labor force growth plus productivity growth. … We track the impact of productivity growth by monitoring inflation-adjusted wages, unemployment, unit labor costs, and price inflation rates. … Also: Productivity seems to be on the mind of Fed Chair Powell

[@kp2718]

This is levels, and I means levels, above anything else you'll find on bloomberg cnbc and the like...

[@ttuck9603]

Thank you Ed. Great insights and much appreciated!

[@Mark-tm2zu]

Always good info Ed. Thanks for the info. You very accurate
Last year and think you will be right again in 2024 with no surprises.

[@alfx4356]

thanks Eddie, waiting for this week's episode one rn

[@krzy51]

You have been right on! Thank you

[@michaelegerszegi4261]

Thank you for your high quality reports!

[@MrDragon1964]

Thank you so much.

[@1lovefootball]

In the past an average annual income will be substantially able to cover the costs of living expenses for a family provided by a single earner. However recently it takes both couples to make ends meet by increasingly working multiple jobs to support their families

[@davidpatterson4024]

Thank you!!!😊

[@amatuer2]

Thank you for your analysis

[@vitalitymirth]

Thank you

[@Zero11_ss]

I'm struggling to find a job that even pays inflation adjusted pre covid minimum wage and isn't just an absolutely terrible job. I think multiple factors have pretty much crushed low income Americans and we are seeing a widening of the two Americas/economies we already had.

[@nonexistent5030]

When I look at this chart and see historical cases where we are in this phase of the cycle and it's overlayed with recessions that culminate in stock market crashes and mass layoffs I find it hard to see how this chart is simultaneously being used to explain that the economy is booming and the stock market will continue to rip...

[@antonyeranossian5607]

hello Mr. Yardeni, can you please let us know where we can see the productivity numbers ?

[@goldreserve]

Yardeni Research website.

[@Actuary1776]

Powell said the exact opposite of what you’re claiming. He stated very clearly in the 60 minutes interviews the Fed is not waiting until inflation hits 2% before cutting, only that it’s sustainably moving towards 2%. Not sure why you’re saying this.

[@edyardeni7397]

You are right. I misspoke. In our QuickTakes, I actually wrote what you wrote above. Thanks for correcting my mistake.

[@wouterbrakhoven8914]

Thank you. It is just amazing how numbers make everything so sterile. Lovely story which does not reflect the increase in poverty and other problems in the USA. Productivity increases, so wages can rise....what a nice dream for most people.

[@69pepe420]

Pepe