Catherwood LibraryILR School

Figures released yesterday by the Labor Department show that in spite of the U.S. economy's slide into what many now acknowledge is a recession, productivity rose in the third quarter of 2001. This increase is due to U.S. companies' widespread use of layoffs and work schedule reductions following the terrorist acts of the past months---leading to a decrease in work hours which outpaced a decrease in output by over 250%. Although the Federal Reserve believes that the U.S. economy has experienced a real growth in productivity in recent years, and expects this growth to continue in the long term, it cautions that short term trends may not be as positive.