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American Workers Could Be About to Get a Lot More Productive; If the pan.. tahurt. Justir. Wall street dournal (Online); New York, N.Y. (New York. N. V, o3 Feb 2022. Full text Details Full text Translate : Workers process fish in Massachusetts. With labor hard to obtain and demand strong, businesses have some of the strongest incentives in years to figure out ways to be more productive. PHOTO: Adam Glanzman for The Wall Street Journal American workess didnt get much more productive last year. This year could be ditferent. The Labor Department on Thursday reported that productivity, as measured by how much the average worber produces in a typical bour, grew at a 6.6% anmual rate in the fourth quarter ftom the previous quarter. A big gain but one that eame on top of a substantial 5% decline in the third quarter, For the whole of 2021 , productivity rose 1.9k. That was less than 2020 's 2.4% productivity gain, and less than the 2k logged in the prepandersic year of 2019 The thing is, the U.S, could really use a productivity boost right now. The more a worker can produce in an hout, the lower the labot costs for production go. When productivity growh is high businesses can sell more, pay workers moee and increase peofits while leaving peices unchanged. At a time when imestors are worried that riping wages will pressure profit margins and that persistent inflation will lead the Federal Peserve to slam the brakes on the economy, stronger productivity gains would be more than welcome. Better pooductivity might be on the way, One reasan is that the phndemic precigitaled changes in the way people woek that, if the pandemic eases this yeac could pay big dividends. The abilty to work from home when that is the berter option and head inno the otfice whet it isnt, or vo meet virtually sometimes and in person others, could make people far more effticient. The peoductivity payoff from the online menus and ordering systems macy restaurants have put in place might nos really arive intil the restaurant bosinest has fuly recovered. But one neednt be optimistic about such developments to expect that productivity might pick up. The supply chain snarls and product shortages that have beset the economy since the pandemic hit have been, among other things, huge time wasters Hi goods start moving more freely a lot of workes could suddenly become much more productive. And to the extent that car manufacturers and others have products that are fully built except for some hard to obtain semiconductors, the installation of some chips could create a real productivity mirecle. Moreover, with labor bard to obtain and denand strong businesses have some of the strongest incentives in years to figure out ways to be more productive, Given the alternatives of losing sales ar seeing iabor costs take an ever bigger bite out of profits, here's guessing many of them will come sp with ways to be more efficient that they never would have when wages were stagnach and economic growth was medicore. Investors ace understandably worried that slower earnings growth and rising interest rates will make 2022 miserable for stocks. But a better productivity outlook could ot the very loast make this year a little less bad American Workers Could Be About to Get a Lot More Productive Credit: By Justin Lahart