Economy in Economy

Those so long mystified by an American economic restoration that did not appear to match longer payrolls with market success may have their answer:

Productivity, a key factor needed to boost living standards, rose at an annual rate of 2.6 percent in the first three months of the year, the best showing in nine months. The Labor Department reported Thursday that the increase in productivity, a measure of worker efficiency, compared to a 2.1 percent rate of increase in the October-December quarter of last year. It was a slightly better gain than economists had been expecting and represented the fastest increase since a 3.9 percent jump in the April-June quarter of last year.


Productivity surpassed historical records earlier this year. From greater output by existing staff comes a disincentive for additional hiring — but greater wealth, of course, ensures the creation of new employment opportunities. So is it wise to assume that productivity will level off in the age of blinding technological innovation? Ingenuity and resilience aren't bad prerequisites.

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