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JCN: Poor productivity growth from overregulation is June's bigger story on jobs

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JCN: Poor productivity growth from overregulation is June's bigger story on jobs

Productivity continues to fall due to regulatory burden, group says.

According to the CEOs of membership organizations Jobs Creator Network, the June jobs report released yesterday was overshadowed weeks ago by the very troubling first quarter of 2015 report on productivity growth. That report showed six straight months of American workers producing less for each hour on the job. The CEOs say this trend is caused by government overreach piling on too many regulations, such as the U.S. Department of Labor announcing a new overtime rule for five million workers just this week.

"The American worker won't keep pace with them if our businesses are forced to spend so much on new rules rather than new tools."

"A nation working harder to create less needs to question whether its economy is really in recovery," said Jamie Richardson of White Castle System Inc., a member of the Job Creators Network. "A large number of economists tell us our problem is a lack of business investment due to too much regulation, and we saw a fresh example just this week with these new overtime rules."

Overall productivity increases since the 2008-2009 recession have lagged far behind prior post-recession expansions, according to a May Wall Street Journal report. The Journal surveyed economists and found 94%blamed "weak capital spending," and 64% identified "government regulation" as the culprit behind the "restrained investment and innovation."

"For our company, the costs will be between $8 million and $12 million a year to comply with the new overtime rule," said Richardson. "This is on top of burdensome health care regulations and a potential minimum wage increase."

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