Biden's America: Labor productivity rate falls at the fastest pace since 1960

[Counselor706]

Labor productivity fell at the fastest rate in more than 60 years in the third quarter, according to a Labor Department report Tuesday.

Higher levels of productivity can offset wage increases when determining unit labor costs, but lower levels raise the number.

Federal Reserve officials watch the productivity data closely for its impact on inflation. Low productivity levels tend to boost inflation as companies are forced to raise prices as unit labor costs increase and profit margins come under pressure.

The economy currently is in the midst of its fastest inflation spurt in more than 30 years, and Fed officials are expected to begin tightening monetary policy*to combat rising prices.

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[Sean Renaud]

Am I supposed to be impressed?