The Labor Department reported that worker productivity rose at an annual rate of 2.9 percent in the spring, which is the smallest gain since late 2002. When productivity is rising, workers enjoy a higher standard of living. However, high productivity gains can also lead to weak job growth as employers are able to boost production without hiring new workers. A sharp slowdown in overall production has been a major factor in this quarter?s low productivity gains.
See "Productivity Posts Slowest Rise Since 2002", The New York Times, August 9, 2004