Saturday, September 29

Company increased profits without this spring

Company increased profits without this spring of the cartoonist, relies on the lack of recruitment of profitable companies.

Despite a virtual freeze in spring company U.S. were the increasing profit and the total volume and services produced by 1.7 percent.

How to make more things to and serve more customers without more employees of these companies?

She not asked employees to work more hours. She asked her harder work. And they not out throwing hand.

The Labor Department reported Wednesday that productivity of the workforce U.S. much faster clip than previously accepted rose to one in the second quarter. Productivity - which simply measures the volume of goods produced per worker per hour and services - jumped at an annual rate of 2.2 percent. That was faster than many economists had expected.

Since the recession ended in June 2009, employers have been U.S. ruckweise setting. In the first three months of the year, job growth took offer significant hope that the labour market had begun to recover. Companies added also overtime, expand the total number of hours worked by 3.1 percent.

But this setting spree and extension of the work week ground to a halt this spring. In April, may and June, U.S. payrolls only 239,000 new jobs - adding less than the month of January alone. Overtime also froze; the number of hours worked by only 0.1 per cent.

Despite freezing the jobs and working hours this spring, companies pushed US more profit from their activities. Corporate profits rose by 6 percent in the previous year in the second quarter.

And while they workers produce more asked, a weak labor market helped keep the line on wages companies. The Government economic wage measure, known as unit labour costs, rose only 1.5 percent in the second quarter after rising 6.4 percent rate in the first quarter. Unit labour costs have barely moved since the recession ended 2007.

Companies more profit from the same number of workers to resume a squeeze, have them little incentive to their payrolls. It not good for the future setting Iraku.

But some economists believe that the increase in productivity may be only temporary.

"When mediocre growth during a virtual hiring freeze is reached, as the case was in the second quarter, the increase in productivity is usually temporary and payback is typically in the following months," said Erik Johnson, an economist with IHS global insight.

Last year, the productivity has increased 1.2 percent. This is far below the average productivity growth of 3 per cent in 2009 and 2010 resulted. These gains were a result of massive redundancies slashed costs in the face of falling demand during the recession as companies. With personnel cut to the bone, the pace of layoffs has slowed sharply.

Even if future productivity gains are hard to prove, companies likely remain reluctant to hire until they see a convincing pickup final demand for their products and services. This happens two in General or attacks three years after a recession as demand from consumers.

There have been some recent signs of the strengthening of economic activity of the demand. Car sales have risen this year to risk higher mileage models, to help blunt have been looking for impact fuel prices as buyers with ageing clunkers. Sale of residential property, which in General will help lead economic recovery, have also begun this year alive.

But the current expansion cycle remains one of the weakest on record. Almost four years after growth in 2009 the economy continued hardly recovered, viewed tonal range when the recession began.

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