Millions remain out of work. Their jobs are gone forever. Yet, the economy is in recovery even without those jobs.
Economists have an explanation for economic growth without job creation. They call it productivity, and it can offset job losses.
Productivity is a measure of economic output per unit of input. For a factory, productivity is the amount of product manufactured divided by the number of hours needed to produce the goods.For example, if a factory produces 100,000 cars a month and employees work 200,000 hours, productivity is 0.5 cars per hour. However, if labor drops by 50% a year later […]
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