Data Bank Focus: Worker Productivity, Employment and Compensation

United States labor productivity has continued to increase since 2001 with a positive change year over year. Although productivity is a function of labor and might be expected to grow or shrink in parallel with changes in employment levels, in several years, productivity increased even as employment fell. Companies are doing more with fewer workers. Productivity and employee compensation appear to have a more direct relationship with both rising and falling in tandem, albeit at times with a lag and with productivity increasing at a higher rate than compensation.

Workforce Management, May 2012, p. 18

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