American Workers Most Productive in the World
 

American Workers Most Productive in the World

By Jessica Stillman, September 4th, 2007


Recently on the BNET Intercom we noted the results of a UN study which concluded that, compared internationally, Americans are pretty lazy. We also asked whether American wages were likely to fall if workers in other countries were willing to work harder for less.

There were a number of smart replies and several people pointed out that there is a reason Americans deserve to earn more. We’re more productive. For example, meldot commented:

“U.S. workers have a choice - work smarter or watch our wages compress. The only reason we deserve higher wages is because we can do it better, more efficiently, faster.”

Another report out yesterday confirms what meldot and others were saying about American workers. The International Labor Organization ranked American workers as the most productive in the world. The Irish came in second. East Asian workers won the titled of most improved — doubling their productivity in the last ten years.

How do we explain this gap in productivity? Other countries have equal levels of education and Korean workers (who work the longest hours according to the ILO) are certainly not lazy, but each Korean worker still produces only 68% of the total of his US counterpart. Recent research by McKinsey & Co explaining what Europe must do to close the productivity gap sheds some light on why American workers produce so much:

Economies must liberalize their product markets and allow competitors to enter and exit markets freely….

A level playing field allows productive businesses to thrive while the rest fall by the wayside. To develop innovations and create more value, entrepreneurs need a large, unfragmented market with fewer bureaucratic hurdles.

Interestingly, the study also concludes that “the welfare state—defined in the narrow sense as social transfers, entitlements to sick leave and maternity leave, social-insurance payments, and the labor taxes to pay for them—directly influences only a small part of Europe’s 19 percent labor input gap.”

The conclusion is clear, more than anything intrinsic in our workers, it’s the fair and open competition fostered by the American business environment that should get the credit for our outstanding productivity. Still, Americans can come back to work after Labor Day today with a little bit of pride that they’ve retained the title of world champions of productivity.

Huh? Oh, sorry........I'm still groggy after my nap.

Doesn't everyone else get more vacation than us?

I read the article.....Now, I'm just waiting for Hilary to re-distribute my "productivity".......

Is this American workers or workers in America? There is a difference... some here legally and most not...

Please don't disturb me while I'm surfing the net at work.

Yup...a lot...

Is this a joke? Are we really? Wow, would totally surprise me!

:D:D:D

+1.... but I'm self employed!

No joke - really. I can honestly say that of all the places I visit, American workers are more productive. They just are able to get more done in a short time frame. Now I don;t know if it has to do with better training, less debate, or if they just want to get the heck out of work as fast as possible!

I have a coworker who used to go to Japan frequently to meet with suppliers. He would often stay for 2-4 months in a stretch. Long enough that he could get a sense for how a company worked instead of just a one-day "show visit". According to him, though Japanese workers would often be at work for 10-12 hours a day, they would take frequent breaks. Most of all, they would never ask for help with a problem. He sometimes saw a single worker struggling with a simple task FOR WEEKS. According to him, it is somewhat shameful to admit you need help--even if your instructions made no sense. He also thinks that the Japanese derrive pride from how much effort they put in (hence the long hours) and not necessarily what they accomplish...

Automation plays a very large role in these numbers. I have machines now run by one man that does the work it took five men to do 10 years ago. Though that one man is actually working "less hard" than any of the five did ten years ago, he's considered a 500% productivity improvement on paper.

Though many countries have equal automation technology, it is much more widespread in use here.

Legion - your coworker is spot on in their observations. Face Time is all important in Japan.

But I am not surprised how people are surprised that US workers have the highest productivity.. This kind of information is rarely reported or made note of..

It goes against the "America is the source of all the world's evils" dogma.

Me on the other hand generally have at least six weeks summer vacation.

I don´t like it, but they force me. Go and relax! We do not want you to produce anything the next six weeks!

So there I am. Week after week. Lying on the beach, driving my Porsche. Dreaming of a life in the US, where I am allowed to be a little productive.

Golly your humor just kills me!!

I dispute the results... I'm an American worker and I have NO children!

The truth be known, productivity rests on mfg entitlement and past production performance - both of which can be SOOO manipulated. I still think we are the best though.

Total productivity could be calculated quite easily. Total GNP divided by a fair estimate of ALL hours worked.

Not to change the subject - but do they or dont they count illegal labor? And what would USA productivity look like if labor intensive industries like agriculture were automated rather than rely on low cost, low productivity labor?