Jobs Report

I know that I asked you all to look for an article on pricing or prices, but this is another major economic story.  The recovery from the recession had been particularly anemic. (Did you know that the recession officially ended in June 2009? http://money.cnn.com/2010/09/20/news/economy/recession_over/index.htm)  The latest jobs report is more of the same.

This was the longest recession in the post-WWII era.  It has also been a very slow recovery.  Some economists speculate that this is actually normal for finance-based recessions.

The really interesting thing is that generally speaking wages track with productivity.  In other words, as you are more productive, you get paid more.  However, a gap between the two has opened up.  As you can see on this page, also from the Bureau of Labor Statistics, since 1979 a large gap has opened up.

http://www.bls.gov/opub/ted/2011/ted_20110224.htm

This leads to the question, where have all the benefits of the higher productivity gone?  If workers are more productive but their wages haven’t risen along with their production, where has the additional production gone?

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