3:00 PM EST Wed. Nov. 14, 2012
Rising Productivity, Shrinking Employment
As we continue our rebound from "The Great Recession," unemployment rates remain high and median incomes are stagnant -– if not shrinking.
"Productivity and innovation have never been higher," said Erik Brynjolfsson, MIT professor and director of the MIT Center for Digital Business, in a presentation at UBM's COMDEXvirtual show Wednesday. "GDP is at an all-time high, profits are at an all-time high, investment is at an all-time high. That's all good news.
"However, on the labor side, we're not doing nearly as well," he said. "The labor participation rate, the share of workers that are in the workforce out of the total population, has fallen off a cliff."