Posted by: Michael Mandel on November 13
Take a look at this chart. The blue bars are U.S. manufacturing productivity growth, and the crimson bars are U.S. manufacturing output growth.
The good news: Manufacturing productivity is growing faster than ever before (or at least the last forty years)
The bad news: Unlike the past, virtue is not rewarded. Despite higher productivity, output has lagged way behind.
These numbers come out of the government’s new report on international manufacturing productivity.
According to the report, U.S. productivity growth in manufacturing between 2000 and 2005 averaged 5.8% per year. Only Korea (7.1%) and Sweden (5.9%) had faster manufacturing productivity growth among the countries studied (which did not include China). Interestingly, these two countries had much higher output growth than the U.S.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.