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Slow Productivity Growth Could Hurt the Economy

USA Today (02/16/15) Paul Davidson

Productivity in the fourth quarter dropped at a 1.8% annual rate and was only up 0.8% in 2014, according to the U.S. Department of Labor. Productivity averaged 2.2% between 1947 and 2014 but hasn’t risen by more than 1.0% a year since 2010. Slow productivity growth could hurt future gains, economic growth, and wage increases, experts say. Low productivity growth could encourage businesses to increase hiring in the short term.