Productivity rating highest in 19 years

Manufacturing News, Source : TheManufacturer.com
Published : 05 Jun 2002 8:36

The Labor Department reported Friday that productivity ratings escalated to 8.4pc during the first quarter of 2002.

This jump marked the biggest increase in 19 years, bringing good news for an economy on the mend.

“Coming on the heels of the robust 5.5 per cent growth in productivity reported for the final quarter of 2001, it suggests strongly our economy is bouncing back,” said Jerry Jasinowski, president of the National Association of Manufacturers, in response to the recent report. “Productivity is key to economic growth without inflation. This will encourage the Federal Reserve to keep interest rates low.”

Half a million jobs have been lost in the manufacturing sector in recent times due to weak exports and the overvalued dollar, said Jasinowski. With productivity up, manufacturers can work toward increasing labor and building a more competitive edge. Employment ratings in the manufacturing sector are currently leveling off from its previous decline, and the labor ratings in manufacturing are expected to improve later this year, he said.

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