Great Graphic: GDP Per Employed Person

This Great Graphic is part of an interactive chart posted on Bruegel by Michele Peruzzi, Marco Antonielli, Silvia Carrieri and Carlos De Sousa.  It depicts the output per employed person, which is a similar, but different than GDP per capita.  It is a purer measure of productivity.
The graph is not that surprising.  We know US output is higher now than before the crisis and will few people employed.  We know the UK economy is a bit smaller still than it was at its pre-crisis peak and that its labor market held up better than in the US.  The euro area economy is smaller and few people are employed.
The chart also illustrates one of the points that we think has been lost on many observers.   The US has emerged on this side of the Great Financial Crisis in a more competitive position than it entered it.   We suspect this gap will widened further in the period ahead, with the help of the cheap energy and low unit labor costs.
This piece is cross-posted from Marc to Market with permission.

One Response to "Great Graphic: GDP Per Employed Person"

  1. benleet   April 30, 2014 at 2:13 pm

    While $122,200 is the output per worker, the median wage income among 154 million is $27,519 according to the Social Security Administration 2012 report on wage income. (The S.F. Federal Reserve used to publish this GDP per worker graph but lately has discontinued it.) The average disposable income (post-federal-tax income) per capita is $39,000 according to the BEA, and per worker it would be around $81,000. Half of U.S. workers earn in wages less than 6% of total personal income, or about $750 billion of total income of $14 trillion. Let me repeat, about 77 million workers all earning less than $27,510 per year, collectively earn less than 6% of all personal income. If these workers cannot buy what they produce, then how does this put them at a competitive advantage? Or does this mean the owners of U.S. corporations are at a competitive advantage? My blog, http://benL8.blogspot.com