The Dark Side of the Productivity Surge

According to the Bureau of Labor Statistics, even though the economy is declining in the US, non-farm sector's productivity grew at 9.5% annual rate in the July-September Quarter followed by 6.9% in the second quarter. Is this a good thing for economy? The author says it wasn't because of clever efficiency measures or the purchase of wonderful tools that help people get their jobs done faster. Such improvements take years, not mere months. Rather, it was because companies cut jobs and work hours drastically. Work hours fell at a 5% annual rate even as output increased at a 4% rate, the government said. So people working shorter hours had to do the same amount of work as before, or more. People who kept their jobs had to pick up the work of ex-colleagues. Many workers probably put in extra hours that weren't counted in the statistics in order to get all their work done. That would exaggerate the output-per-hour gain. I think this phenomenon can explain the current situation why GDP is recovering in recent months, but unemployment rate is still rising in the United States.