Corporate profits are way up, according to the U.S. Department of Commerce, but unemployment remains a big problem. Why is that?

Obviously it’s President Obama’s fault; but how, exactly?

A recent Commerce report, as dissected by Slate.com, tells us that “corporate profits, which stood at $1.5 trillion in 2007, fell sharply to $1.26 trillion and essentially stagnated in 2009. But since the Obama presidency started, the trajectory in quarterly profits has reversed. Quarterly profits (reported at an annualized rate) rose from $1.18 trillion in the 2009 second quarter … to $1.64 trillion in the second quarter of 2010.”

That sounds suspiciously good, capitalism-wise. Perhaps the president doesn’t understand how socialism is supposed to work, or maybe Larry Summers accidentally left the administration’s diabolical plan on the Metro, or it could be that the systematic strangulation of corporate America has been put off until after the mid-term elections.

Whatever the reason, cash is rolling through the front door, and it would be nice if companies started hiring for the next boom. Sure, that boom will end in another spectacular crash, but you can’t have much fun just watching a roller coaster. You have to ride it.

But they’re not hiring much, and there must be a reason why well-qualified job applicants are being directed through the back door, the one that leads to the alley.

We may have found a clue.

Flexsteel Industries Inc., based in Dubuque, reported a $10 million profit for its recently concluded fiscal year. Not only did the furniture-maker bounce back from a money-losing 2009, it made more than twice as much money as it did in 2006. And – here’s the scary part for everybody below the “chief” level – Flexsteel did it with 1,000 fewer employees than it had in 2006.

That’s right, the workers violated the unwritten code. They improved productivity while their unemployed comrades were sitting at home watching Oprah. Even a teenager working on a farm knows you don’t try to show the boss that you can handle the work of two people. Or, as sure as CEOs get stock options, you will end up doing the work of two people.

Economists call it “productivity,” and it’s the kind of thing workers can be proud of until they realize it’s just another word for “as long as you’re all caught up, I’ve got something else that needs doing.”

However, this golden age of browbeaten workers might be coming to an end.

Business Insider reports that U.S. productivity dropped in the second quarter of 2010, ending a long trend. “Companies have been asking more and more out of fewer employees for the last three years,” according to the website, “and the threat of joining the 14.6 million ‘officially’ unemployed has compelled workers to comply.”

It goes on to report a decrease in “capital stock,” which is all of the stuff that companies own, and hazards a guess: “Perhaps worker productivity is down – along with capital stock – because there’s simply not enough business to warrant investment … either in people or equipment.”

That’s reflected in Flexsteel’s net sales, which were $100 million less than in 2006. America has its eye on a new sofa, but it would be nice to land a steady job first.

CEOs were quick to act when the economy collapsed two years ago. Big deal; managing by cutting payroll is simple. Now there’s not much more downsizing to be done, and life gets tricky.

Now it’s a matter of finding new markets, developing new products and other annoying challenges like that. If you’re a boss, this might cut into your lunch hour.

Steer the company back to big sales, though, and you’ll be rewarded. Hey, if you can also keep the parking lot half-empty, make room in your top drawer for a fresh stack of stock options.