Economist's View: "Productivity vs. Employment Growth: A Zero-Sum Game?"

Economist's View: "Productivity vs. Employment Growth: A Zero-Sum Game?"

I've had arguments about my dad about "productivity". I think the term is often used as an instrument, when it is actually a goal (productivity being output/worker over a period of time). Want to boost productivity, then you have to increase the output/worker ratio. When you hear news that "productivity is up 3.3%", you have to ask if the workers are working harder/smarter, or there is some new technology involved (hi Solow!). I think it is obvious than in any optimized production system (where marginal returns to labor at at their peaks), an increase in employment will decrease productivity and vice-versa, unless there is also a technological or administrative change. This is why I find it curious that economists laud productivity gains at the same time that we see employment (and compensation) losses without looking at the overall effect (and the distributional problem).

It's one of these discussions that I like to have over some beers.