Reply #67: Morning Marketeers, [View All]

:donut: I have a question that is tangentially related to employment and I hope the experts here can give me an answer.

Productvity takes a tumble-wages increase at the fastest pace in a year.
<snip>

Americans' productivity, a key determinant of rising living standards, dipped at an annual rate of 0.5 percent in the October-December quarter, while wages rose at a 3.3 percent pace, the fastest gain in a year, the Labor Department reported Tuesday.

<snip>
The 0.5 percent drop in productivity, the amount of output per hour of work, was the first quarterly decline since a 0.6 percent fall in the first quarter of 2001, when the country slipped into a recession.

<snip>
Brian Bethune, chief U.S. economist for forecasting firm Global Insight, said he expected productivity to rebound to a rate of 3.8 percent in the January-March period, reflecting stronger economic growth after the shocks of the fourth quarter.

<snip>
The Federal Reserve is closely watching the performance of wages to make sure that rising wage pressures do not translate into higher inflation overall.

Rising productivity is the key factor behind increases in the standard of living because it allows employers to pay workers more because of the increased output without having to raise the price of their products.


http://www.chron.com/CDA/archives/archive.mpl?id=2006_4075215

The numbers may be sayinging it, but my pocketbook ain't feeling it. I have been getting dinky raises (became a Nurse in 91) that barely keep up with inflation at my job but the deduction for ,say, insurance totally wipes out the pay raise. Then what is left goes to living expenses (and we know they have NOT gone down over the last 15 years). Since 1991 my per hour has only gone up $15 dollars per hour (from 20 to 35 per hour for a Nurse-no benies). In NM, the wage was $15 now up to $25 per hour no benes. So now the Feds are telling me that any wage increase I get is a threat to the economy? That only a nation wide productivity increase (in an ever increasing number of unemployed) will be needed BEFORE my wages can increase. How do they figure this crap? I don't expect to get obscenely wealthy being a Nurse, but I have not been able to swing affordable housing on just my salary and being a single mom (I am at a peak now at almost $50K without doing extra work). With Hubby's salary ($24K)and some OT on my part, we mught be able to afford one soon (as debts are reduced). While this is not poor, I don't think it's exactly mid middle class either, and we are both educated professionals.

Is this a Feds numbers racket to keep us poor or what. Just how can the justify trying to keep wages down while we are squeezed so hard????

Happy hunting and watch out for the bears. I am posting so late cause the clinic is like a trauma center today.....