Wouldn’t labor productivity be impacted by really low unemployment and a low real minimum wage?
That should mean lots of people who would not otherwise be part of the labor market are getting low wage/low productivity jobs. So in an aggregate measure dollars of output over hours worked, you’re raising the numerator at slower rate than you’re raising the denominator.
Early in the pandemic, high wage white collar workers stayed home and kept their jobs. Low wage service workers were furloughed. -> labor productivity goes up.
Service workers get hired again-> labor productivity drops.
That should mean lots of people who would not otherwise be part of the labor market are getting low wage/low productivity jobs. So in an aggregate measure dollars of output over hours worked, you’re raising the numerator at slower rate than you’re raising the denominator.
Early in the pandemic, high wage white collar workers stayed home and kept their jobs. Low wage service workers were furloughed. -> labor productivity goes up. Service workers get hired again-> labor productivity drops.