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Productivity in the Us

By stephanieyeo Jan 13, 2011 307 Words
Chapter 2 discusses the topic of productivity. Is the United States still productive and/or competitive in manufacturing from a World Class standpoint? The United States is still producing and competing in the manufacturing sector on a global basis, but could be performing at a higher level. In 2009, the US had the highest increase in manufacturing productivity (due largely, I would think, to new technology) and also had a decline in unit labor costs. (Wall Street Journal) While U.S. productivity is increasing, it is not the top global manufacturing producer. The main decline in the U.S. has been in terms of labor, not in terms of productivity. (The Atlantic) Unfortunately, it seems that our technological increases in productivity have cut jobs for U.S. workers instead of increasing jobs. Some contend that the decrease in jobs has been via less educated/skilled workers. Manufacturing jobs for workers with advanced degrees have increased in number since 1992. (Heritage) The increase in productivity is likely due to an increase in educated/skilled workers who have the ability to operate more technologically advanced equipment. References

U.S. Manufacturing Productivity Strong in 2009 (12/22/2010). Real Time Economics, Economic Insight and Analysis from the Wall Street Journal. Retrieved 1/6/2011 from http://blogs.wsj.com/economics/2010/12/22/us-manufacturing-productivity-strong-in-2009/ If U.S. Manufacturing is in Decline, How Are We Leading the World in Productivity (12/23/2010). The Atlantic. Retrieved on 1/6/2011 from http://www.theatlantic.com/business/archive/2010/12/if-us-manufacturing-is-in-decline-how-are-we-leading-the-world-in-productivity/68496/ Technology Explains Drop in Manufacturing Jobs (10/12/2010). Ther Heritage Foundation. Retrieved on 1/6/2011 from http://www.heritage.org/research/reports/2010/10/technology-explains-drop-in-manufacturing-jobs

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