Lower Productivity Gains May Lead to More Hiring

Summary


WASHINGTON - The productivity of America's workers grew modestly in the final three months of 2003, raising hopes that companies will step up hiring to meet demand rather than relying solely on increased efficiency.

The Labor Department reported Thursday that productivity the amount an employee produces for every hour on the job grew at a 2.7 percent annual rate from October through December. Although that was a slowdown from the 9.5 percent rate for the three previous months, it nevertheless was a respectable pace that bodes well for the economy's recovery, analysts said.

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Lower Productivity Gains May Lead to More Hiring

"You can squeeze only so much juice out of an orange. There is no question that businesses seeing demand grow are hiring more pe...

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