Productivity Measurement is Totally “FUBAR” Yet Certainly Overstated


The BLS report on preliminary Productivity and Costs, Second Quarter 2017 shows nonfarm business productivity increased 0.9 percent during the second quarter of 2017.

Productivity is defined as “real” inflation-adjusted output divided by aggregate hours worked.

The quarterly number is very good, but revisions were massive and the overall trend is dismal. More importantly, the measurement is FUBAR. First, let’s dive into the report.

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