Economic Growth: Wages And The Productivity Paradox

Economic Growth: Wages And The Productivity Paradox

Sluggish wage growth and weak productivity growth are two trends that investors and analysts need to keep an eye on next year according to Goldman Sachs' “Top of Mind” end of year Global Macro Research report.

Productive in both the US and the UK remains depressed, despite lower unemployment and economic growth. For example, US productivity growth reached 2.2% on an annualized basis in Q3, a short-term high. However, productivity data is noisy, and like any economic figures, the data should be evaluated over a longer time horizon -- not over a period of just three months. Over the last year, US productivity grew just 0.6%,...