Yes, manufacturing continues to show productivity gains. However, manufacturing employment is now less than 10% of total employment. Total productivity gains can slow even though productivity gains in the manufacturing sector are strong. Other sectors also employ low skilled workers.
I’m sure you’ve heard that it seems harder to get productivity gains in services than goods, and an increasing percent of all workers are in service businesses.
(I have to wonder about a mix bias in the article. Suppose we measure productivity as dollars of value added per worker. Now, within an industry, let’s off-shore […]
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