Productivity rates cited in job losses

DOW JONES NEWSWIRES
NEW YORK -- Manufacturing jobs are being lost by the world's top economies at an accelerated pace, but the decline is not solely the result of outsourcing to developing nations, says a Conference Board study.
Much of the declines can be attributed to a well-known source: productivity, the private research group said. Robust productivity rates are the most important force in creating economic wealth over the long run. But they also allow companies to get more output out of current or reduced work forces, thus creating a drag on hiring.
The Conference Board study found that the most recent cycle, including the recession of 2001 and the subsequent recovery, has shown an increased pace of factory job declines.
Manufacturing jobs have declined by 7.8 percent, compared with the 2.2 percent decrease seen during the early 1990s recession and rebound, the study said.
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