More Americans have jobs and those workers are producing more for less, that according to productivity numbers released for the third quarter by the Labor Department.
Productivity increased at an annual rate of 2.3 percent in the third quarter while labor costs fell at a rate of 1 percent. In part that explains why hiring has been better this year than last.
When workers can make more products per hour worked that frees up money for businesses to do more hiring to make even more money per hour worked.
And that ladies and gentleman are how real jobs are created in the private sector.
Productivity surges as the economy falls into recessionary conditions, then flattens out and then surges again as the economy starts to pick up steam.
So far during this recovery we have had the first two, but not the post-recession surge necessary to fuel much higher employment and economic growth.
This report is a hopeful sign, but not a definitive one that the economy continues to grow.