Productivity of U.S. Rebounds in Q4
For the fourth quarter, U.S. productivity rebounded. And it kept labor costs in check. On Thursday, the Labor Department stated on nonfarm productivity – which measures the hourly output per worker -, boosted at a 1.4% annualized rate last quarter. During the July-September period, productivity declined at an unrevised 0.2% pace. This is the biggest drop since the fourth quarter of 2015.
Furthermore, economists polled by Reuters have suggested productivity rebounding at a 1.6% rate in the fourth quarter. Looking at the fourth quarter of 2018, productivity rose at a 1.8% rate. It increased by 1.7% in 2019, the most powerful since 2010, after accelerating 1.3% in 2018.
From 2007 to 2019, productivity moved up at an average annual rate of 1.3%. This is under its long-term rate of 2.1% from 1947 to 2019. And this means the speed at which the economy can grow over a long period without igniting inflation has slowed.
In addition to that, economists estimate the economy’s growth potential at about 1.8%. Several economists are blaming tepid productivity on a shortage of workers, too. And this serve as the effect of excessive drug addiction in some places in the country.
Also, others argue that low capital expenditure, which they say has resulted in a steep decline in the capital-to-labor ratio, is restraining productivity. Then, others believe that productivity was measured inaccurately, particularly on the information technology side.
The Coronavirus
Meanwhile, the ongoing spread of the new coronavirus, which originated in China, is not just a test of public health systems worldwide. It is also a fight against misinformation, according to a Singapore minister on Friday.
As of now, the coronavirus has infected over 30,000 people around the world and killed more than 600; most of them are from mainland China. However, Singapore has one of the highest counts of infections outside of China, with 30 confirmed cases as of Thursday.
Minister for communications and information in Singapore, S Iswaran, stated, “When you have an outbreak like this, it is not just a public health challenge. It is also a communication and psychological challenge.”
Also, he said that if the measures they undertake are supposed to be effective and achieve the aspired results, they must remain calm, be well-informed, and have a disciplined response from the population. “And if you don’t have that, then I think it makes the task that much harder.”
Aside from that, a lot of people distribute false information around the globe, including suggestions that sesame oil, garlic, and vitamin C can kill this particular strain of coronavirus.
The World Health Organization (WHO), which announced the illness as a global health emergency, gave a warning about misinformation and the harm it can cause.
Also, Singapore has experienced false information circulate since the outbreak began. And this includes a forum post the previous month, alleging an individual died due to infection. But the country has not yet had any deaths in this outbreak as of Thursday.
There is also a social media posts claiming that a public transit station was closed for disinfection because of a suspected case of the coronavirus.
