But there are stuill many other factors to consider such as the expansion/contraction of business inventories and backlogs.

Seasonality also plaays a part...that's one reason why they look at the "non-farm" numbers... While exccluding farm labor reduces the seasonal sswings, it does not completely eliminate them.

A couple things about increasing productivity: Increased productivity enables businesses to pay their employees more as the value of each unit of labor input results in a higher value-added return on investment.

the productivity also yeilds increased return on capital investment (machines, plant and equipment, etc...) that is even greater t8han the return on labor input...

So an 8% increase in productivity doesn't exactly translate exactly into a 8% greater output per labor unit input...It may be much greater (or lesser) depending on the nature of the industries surveyed.

Note also, that the greater return on investment can itself then sspur additional economic activity through a multiplier effect (greater return makes new investment more desireable and the return themselves will be reinvested somewhere else through higher, wages, dividend payments, increased R&D spending, etc...)

Supply side capitalism is a good thing.

Scott Evil