Financial Times FT.com

Construction jobs cloud US productivity

By Krishna Guha in Washington

Published: June 7 2007 20:50 | Last updated: June 7 2007 20:50

A conundrum in construction lies at the heart of a US jobs market puzzle that continues to baffle economists – including officials at the Federal Reserve.

After a year of sub-par growth unemployment is a mere 4.5 per cent. With jobs growth strong but output growth weak, productivity looks very poor.

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