Measured labor productivity has risen during the last three recessions (1991, 2001, and the 2007 downturn), reversing the historical procyclical pattern, because firms lay off organizational-capital workers (innovation, R&D, cubicle process workers) while retaining the small number of final-production workers—so output per worker rises even though no one is necessarily working harder.
causalpending
Speaker
Garrett JonesEvidence Quote
“measured productivity which we need to talk about... it's an aggregate number that's gathered by looking at total output divided by some measure of labor”
Created: 6/17/2026, 10:31:36 AM
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