Increase in US Productivity

WASHINGTON (AP) —As whole world is suffering from economic crises and same condition is in United States.Mostly Professional business person and economist are saying that productivity work will get more slow later this year in United States.But it came wrong as U.S. companies got more output from their workers this spring than initially thought. Productivity rose at a modest 2.2 percent annual rate in the April-June quarter, largely because employers cut back sharply on hiring.This was great achievement at this stage when no one was aspecting this rise.This productivity was much better than its ist quarter and it was 1.6 percent more than previous productivity.What was the main reason behind it.The reason is that government revised growth in the second quarter to an annual rate of 1.7 percent,up from an initial estimate of 1.5 percent and this decision has given result productivity.How will you define Productivity.Productivity is the amount of of output per hour worked.This all has increased the Labor costs with annual rate of 1.5 percent,which is slightly lower than the 1.7 percent initially estimated.This increasing productivity will definitely effect on corporate profits to boost.Companies are not interested to add more staff and totally depending upon their current staff.They are trying to get more and more productivity with less staff.This is very positively strategy to get productivity with less staff.