In a recent research study conducted by the Conference Board it’s concluded that in 2009 the global productivity fell by 1% on average which is the first time in 19 years it’s declined as measured as output per worked hour. On a global basis it is expected to grow by more than 2% in 2010.
There are significant differences between different regions that are noteworthy. In the US productivity (in per hour terms) actually grew 2.5%. This was explained by how companies in the US quicker and more drastically reduced their workforce to make the cost side of the productivity equation smaller. Productivity growth in the US is projected at 3%.
It’s interesting to contrast this to the European productivity growth that turned negative in 2009 where output per hour fell 1 percent.
“These are unusually large differences in productivity growth between the United States and Europe,” said Bart van Ark, chief economist of The Conference Board. “U.S. employers have reacted much more strongly to the recession than their European counterparts in terms of cutting jobs and hours. In 2010, both Europe and the United States will see higher productivity growth coming out of recession. However, a jobless productivity recovery is the most likely scenario in both regions.”
It’s also very interesting to see how for example the Chinese market at the same time had a productivity growth of 8.2%.
Good luck with your growth and productivity gains in 2010.
February 4th, 2010 at 12:42 am
You are absolutely right, the jobless growth will be there,many has learnet the lesson from recession, but for sure the BRIC+MIT(Mexico,Indonesia,Turkey) { E7} the emerging economies along with G7 economies will drive the world economy. The G7 will E7 will be interdependent on one another.
According World bank report this year the economy will grow at 3.76%.
With Warm Regards,
Debashish.