Causes of declining productivity

What caused the general levelling off or even some annual de­clines in American productivity? Economists say that there was no one cause but many, each contributing a small amount.

Changes in the Labour Force.

Since the mid-1960's the makeup of the labour force has changed. About then the first young adults from the post-World War II baby boom joined the work force, including an increasing percentage of women. The effect of these young and inexperienced workers on the labour force was a short-term levelling off of productivity in the 1970's.

High Energy Costs. At one time cheap energy accounted for productiv­ity increases. That is no longer true. Since the early 1970's price increases resulted from the policies of the Organization of Petroleum Exporting Countries (OPEC) - a cartel established by oil-producing countries in an attempt to regulate the supply and price of oil. These price increases have had a major impact on productivity, not only in the country, but in all industri­alized countries. Money that might have been used for new and more productive machines (capital investment) or other ways to increase productivity has gone into paying for higher energy costs and into finding new or less expensive energy sources. It remains to be seen if recent oil price reductions will once again promote productivity gains.

Reductions in Research and Development. The steady decline in the number of patents issued to U.S. residents since 1971 causes some to say that America is losing its top place in technological development. The facts show that we were spending three percent of our GNP on research and development at the beginning of the 1970's. By the 1980's spending had fallen to two percent.

Why is that important? Through research new products and techniques are found that can improve our productivity. Increasing productivity may en­able a company to offer wage increases, increase dividends to stockhold­ers, or expand, all without raising prices.

Growth in Service Industries. Until 1970 there had been a steady shift of people from lower productivity farm jobs to higher productivity jobs in busi­ness and industry. That trend slowed in 1970 and has not increased since. Also, there has been increased employment in the so-called service indus­tries—businesses that provide services like health care, appliance repair, and education or training. Productivity in these businesses is hard to measure.

**Task VI. Give the English translation to the following:

Спричинити загальне урівняння, втратити перше місце в розвитку технологій, зменшення цін, більші енергетичні витрати, збільшити дивіденди акціонерам, стійкий занепад, промислові країни, тенденції продуктивності праці, надавати змогу компанії підвищувати зарплату, охорона здоров’я, сфера послуг, регулювання цін на нафту, дорогі джерела енергії, постійний занепад

**Task VII. Answer the questions on the text:

1. What was the cause of a short- term leveling off productivity in 1970’s?

2. What is OPEC? What was aim of its establishment?

3. In what way do oil prices impact the productivity?

4. Do the reductions in research and development effect the productivity?

5. What are the countries with high developed service industries? Is it easy to measure productivity in service industries?

**Task VIII. Read and translate the following sentences. Pay your attention to the use of the Infinitive:

1. The price for oil is sure to produce panic at the Stock Exchange this week

2. He is sure to be a productive manager.

3. That trend is likely to slow down.

4. The reductions in research and development are certain to lead to productivity decrease.

5. The delegation is sure to be sent to our partner and settle all misunderstandings.

6. The use of new technologies is obvious to enable our produce to pay higher wages.

7. Productivity in health care, appliance repair, education and training are certain hard to measure.

Контрольні питання

* Другий рівень – середній. Знати слова та словосполучення з теми та вміти використовувати в реченнях; знати основні поняття та правила.

** Третій рівень – достатній. Знати основні визначення, поняття та правила. Вміти використовувати їх в зв’язному мовленні. Відповідати на питання.

*** Четвертий рівень – високий. Визначати проблемні питання. Вміти логічно та вільно висловлюватися в межах вивчених тем.

Дата добавления: 2017-02-01; Просмотров: 55; Нарушение авторских прав?; Мы поможем в написании вашей работы!