Workers Become More Efficient, Get Paid Less?

The Labor Department released a report today that showed the efficiency of America’s workers grew at a slightly slower pace in the spring. Companies sought to produce more with leaner work forces.

The Labor Department defines productivity as the amount an employee produces for every hour on the job. Productivity grew at a rate of 2.2% during the April-to-June quarter. Economists commented that this was down from a 2.6% growth rate measured in the first three months of this year.

Economists always have their predictions. For the first two quarters of this year, these predictions have fueled a chaotic ride on Wall Street, among other factors like the price of oil. The forecast was that productivity would rise by 2.5% (source: briefing.com).

We were off by .3%? And? We are still becoming more productive, aren’t we.

But at what cost?

Growth in compensation, which includes wages and benefits also slowed. Companies held back compensation increases or increased benefits because of economic uncertainty and how it might affect their businesses.

So, on a Friday afternoon, when I am thinking more clearly than I do the rest of the week, I ask this question. Why does the workforce continue to give more to corporate America for less? Doesn’t the average American worker face the same fears about how the economy will affect them? Isn’t it already affecting us?

It costs more for the average American to drive to work.

It costs more to feed families.

It costs more to buy almost everything, except cars perhaps.

Who is the winner in this report today?

Not you or me.