Dollars and Jens
Wednesday, February 07, 2007
productivity and labor costs
Today's productivity report was ridiculously good. Real hourly compensation up at a 6.6% annualized rate, with unit labor costs at 1.7%, and productivity at 2.4% (3.0% for nonfarm business). This suggests that inflation is not, at the moment, coming in from labor, though it also indicates some transfer of GDP back toward labor, and stockholders might want to consider the possible places for that to come from.

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