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Editor’s Notice: This story initially appeared on Smartest Greenback.
With quite a few economists predicting that the US is headed for recession, one of many many worrying alerts is a pointy drop in labor productiveness.
After greater than a decade of subpar productiveness progress, the COVID-19 pandemic has raised the prospect of a productiveness growth. Many low-productivity jobs had been eradicated early within the pandemic, whereas giant infrastructure investments and the accelerated adoption of automation and synthetic intelligence created circumstances for elevated productiveness.
Nonetheless, more moderen knowledge exhibits falling productiveness. The Bureau of Labor Statistics reported a 7.5% decline in labor productiveness within the first quarter of 2022, the sharpest decline since 1947.
Productiveness is a helpful metric for evaluating the economic system because it displays the economic system’s means to generate items and companies from the identical quantity of labor. Productiveness progress can concurrently profit companies by means of higher earnings, customers by means of elevated availability of products and companies, and staff by means of higher wages.
In current many years, nevertheless, the hyperlink between productiveness progress and wage progress has weakened. Consultants discuss with this phenomenon because the “productiveness pay hole”. From the late Seventies, the speed of wage progress started to level off, though labor productiveness continued to extend.
To search out the states with the very best labor productiveness, Smartest Greenback researchers divided every state’s complete value added by the full variety of hours labored yearly. The information used on this evaluation comes from the US Bureau of Labor Statistics Workplace of Productiveness and Know-how. Learn extra about our methodology on the finish.
Listed below are the states with the best labor productiveness.
15. Pennsylvania
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- labor productiveness: $79.26
- Whole added value: $702,670,372,000
- complete employment: 5,392,400
- Common annual hours per employee: 1,644
14.Texas
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- labor productiveness: $80.54
- Whole added value: $1,640,004,984,000
- complete employment: 11,749,000
- Common annual hours per employee: 1,733
13. Wyoming
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- labor productiveness: $80.62
- Whole added value: $31,586,315,000
- complete employment: 233,400
- Common annual hours per employee: 1,679
12. North Dakota
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- labor productiveness: $82.06
- Whole added value: $48,299,490,000
- complete employment: 353,500
- Common annual hours per employee: 1,665
11. Colorado
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- labor productiveness: $82.26
- Whole added value: $334,379,906,000
- complete employment: 2,540,100
- Common annual hours per employee: 1,600
10. Maryland
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- labor productiveness: $82.34
- Whole added value: $310,204,445,000
- complete employment: 2,313,200
- Common annual hours per employee: 1,629
9. Illinois
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- labor productiveness: $88.42
- Whole added value: $778,025,075,000
- complete employment: 5,326,200
- Common annual hours per employee: 1,652
8.Alaska
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- labor productiveness: $90.44
- Whole added value: $39,763,770,000
- complete employment: 262,600
- Common annual hours per employee: 1,674
7. New Jersey
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- labor productiveness: $91.21
- Whole added value: $548,008,610,000
- complete employment: 3,655,500
- Common annual hours per employee: 1,644
6. Connecticut
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- labor productiveness: $98.65
- Whole added value: $247,743,547,000
- complete employment: 1,538,800
- Common annual hours per employee: 1,632
5. Massachusetts
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- labor productiveness: $100.72
- Whole added value: $533,657,907,000
- complete employment: 3,288,900
- Common annual hours per employee: 1,611
4. California
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- labor productiveness: $103.30
- Whole added value: $2,729,409,518,000
- complete employment: 15,875,600
- Common annual hours per employee: 1,664
3. Delaware
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- labor productiveness: $104.53
- Whole added value: $66,888,567,000
- complete employment: 404,900
- Common annual hours per employee: 1,580
2. Washington
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- labor productiveness: $106.09
- Whole added value: $536,309,572,000
- complete employment: 3,071,500
- Common annual hours per employee: 1,646
1.New York
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- labor productiveness: $117.86
- Whole added value: $1,530,281,417,000
- complete employment: 8,106,800
- Common annual hours per employee: 1,602
methodology
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The information used on this evaluation comes from the US Bureau of Labor Statistics Workplace of Productiveness and Know-how (OPT). To establish the states with the very best labor productiveness, the researchers divided every state’s complete value added by its complete annual hours labored. Within the occasion of a tie, the federal state with the higher added value was forward.
All knowledge proven relate to non-public, non-agricultural industries in 2021. Worth-added output is outlined as gross output minus intermediate consumption (akin to power, supplies and companies). For a full assortment of definitions see the BLS glossary web page.
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