has slowed to just about half of that pace, rising
at an average annual rate of 1.4% from 2007
through 2019.
While economists have offered various theories
on why the slowdown occurred, they can’t agree
on a single culprit. But some have expressed
hope that a recent modest acceleration in
productivity may be the start of stronger gains
in the future.
In a separate report, the Labor Department
said that applications for unemployment
benefits fell by 3,000 last week to 216,000. These
applications, which are a proxy for layoffs, have
been at very low levels for more than two years,
indicating the strength of the labor market.
However, the weekly data has taken on more
significance with economists saying a jump
in layoffs would be an early indicator that
the coronavirus is having an impact on the
U.S. economy.
The Federal Reserve on Tuesday slashed its
benchmark interest rate by a half-point in an
effort to calm financial markets which had
suffered their worst week since the 2008
financial crisis. The rate cut was the largest since
2008 and the first move between meetings since
that time.
Analysts have said the Fed may feel the need to
cut rates further at its meeting later this month,
especially if financial markets remain turbulent
due to fears about what the spreading virus.
The government will issue the jobs report for
February report with the expectation that
employers added a strong 175,000 jobs last
month with the unemployment rate dipping
back to a 50-year low of 3.5%.