Working Harder For The Same Or Less Pay? You’re Not Alone

The Labor Department said the American work force produced, at an annual rate, 6.4% more of the goods they made and services they provided in the second quarter of this year, compared to a year ago. At the same time, “unit labor costs” — the amount employers paid for all that extra work — fell by 5.8%. That means that Americans are working harder and putting in longer hours for the same or even less pay in some cases, MSNBC.com reports.

The jump in productivity was higher than expected; the cut in labor costs more than double expectations. Workers who have remained on the payroll over the last year are filling in and making up the work that had been done by their departed colleagues.

Economists say that continued wage cuts could seriously jeopardize the recovery of a U.S. economy that still relies on consumer spending for two-thirds of its power. And if, as many expect, the economy begins expanding again in the second half of this year, companies may begin adding more shifts and rehiring workers as demand increases. But there’s no guarantee that companies won’t be keeping the staff cuts in place for longer, even after a recovery.