The U.S. Labor Department announced that U.S. worker productivity increased at a 3.2% annualized rate in Q4 2008 and at a 2.8% rate for all of 2008; the full-year rate was the nation's largest productivity increase since 2003. Each was better than Wall Street's consensus estimates of roughly 1.1% and 2.0%, respectively, according to a Bloomberg News survey.

Rising productivity is win/win

Productivity measures output per hour worked. Economists say rising productivity usually leads to increases in personal income, as businesses can increase salaries/wages paid without increasing their per unit costs. High productivity also usually means the nation's economy can grow without the problem of rising inflation.

Meanwhile, concerning those per unit labor costs -- viewed by the U.S. Federal Reserve as a key barometer of inflationary pressure in labor markets -- they increased 1.8% in Q4 2008 and just 0.5% for all of 2008.

Further, productivity gains that are larger than per unit labor cost increases usually translates into a quick snap-back in corporate earnings, once the U.S. economy starts to recover, so says economist Peter Dawson.

"One positive Americans can point to during this difficult time is that U.S. corporations are lean, are becoming even more efficient, and that the American workforce is becoming even more productive," Dawson said. "That almost always means earnings will rise at healthy rates, once the economic recovery starts."

"It also means that U.S. companies and workers are better-equipped to face and beat foreign competitors. Increased productivity makes us a stronger actor on the international business stage," Dawson said.

Corporate/Economic Analysis: This continued, positive trend in corporate/workforce productivity also provides a hint regarding the shape of the U.S. economy of the future. What may represent both the rebirth of the United States and the nation's niche(s) in the global economy of the next decade? High-end production and sectors, technological breakthroughs, better productivity, and doing things other countries can not do. In other words, look for innovation and the nation's remarkable ability to adapt and improve to be at the heart of the new sectors of growth and opportunity in these United States.