Productivity slump puts pressure on US economy

American productivity continued to decline sharply in the last quarter as the world’s largest economy contracted and employers were forced to dig deep to attract workers.

Non-farm labour productivity — the goods and services produced in the United States, per hour worked — decreased by 4.6 per cent in the three months to June, according to data published by the US Labor Department. Output dropped by 2.1 per cent and hours worked rose by 2.6 per cent over the period. US economy

It is the weakest pair of consecutive readings since records began in 1947, after productivity declined by 7.4 per cent in the first quarter, and underlines the scale of the challenge faced by the Federal Reserve as policymakers scramble to bring down