How did a financial crisis and an economic downturn result in higher productivity numbers?

By Kleinheider Posted on November 5, 2009 at 1:28 pm

Michael Mandel walks you through the numbers:

This morning’s productivity numbers showed a huge gain in output per hour in the third quarter—up at an annual rate of 9.5% in the nonfarm business sector.

But here’s something else. If we are to believe these numbers, the biggest financial crisis since the Great Depression has actually produced a productivity gain of 5.1% since the downturn started in the fourth quarter of 2007.

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Tags: economic indicators, Michael Mandel, productivity