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Taking a Look at Employment and Productivity

Both employment and productivity are expected to remain at a “low equilibrium,” in which the sources of growth (labor, capital, energy, and materials) increase only moderately, together with limited increases in the productivity with which these sources are being used. There is an increased likelihood of a jobless recovery, as employers add hours to the existing workforce, and the sources of future growth will have to be found in technology and organizational and institutional innovations. This month’s issue looks at the interaction between employment and productivity growth in the United States and how the "new normal" will affect employment.

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