U.S. first-quarter productivity rises at its fastest pace in 11 years

WASHINGTON U.S. worker productivity increased at its fastest pace in 11 years in second quarter as hours plunged amid the COVID-19 pandemic, leading to an acceleration in labor costs.

The Labor Department said on Friday nonfarm productivity, which measures hourly output per worker, increased at a 7.3% annualized rate last quarter, its largest rise since the second quarter of 2009. Productivity fell at a 0.3% pace in the January-March period. Hours worked tumbled at a 43.0% rate in the second quarter, the largest since the series started in the first quarter of 1947.

Economists polled by Reuters had forecast productivity rebounding at a 1.5% rate in the second quarter.

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Compared to the second quarter of 2019, productivity rose at a 2.2% rate. Growth in unit labor costs – the price of labor per single unit of output – jumped at a 12.2% rate in the April-June quarter. Unit labor costs increased at a 9.8% rate in the first quarter. They rose at a 5.7% rate in from a year ago.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor


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