–Year/Year Productivity Now +6.3%, Unit Labor Costs -3.7%
By Kevin Kastner and Ian McKendry
WASHINGTON (MNI) – U.S. nonfarm unit productivity rose 3.6% at an
annual rate in the first quarter, a smaller gain than the 6.3% rise in
the previous quarter due to a slower output growth and slightly faster
hours worked growth, the Bureau of Labor Statistics reported Thursday.
Unit labor costs fell 1.6% at an annual rate in the first quarter,
compared with the 5.6% decline in the fourth quarter.
A Market News International survey of economists centered on a
median expectation of a 3.0% rise in productivity in the first quarter,
with unit labor costs expected to be down 1.0%.
Output growth slowed to a 4.4% gain from the 7.0% rise in the
previous quarter. Hours worked rose 0.8% in the first quarter, up from a
0.7% rise in the previous quarter.
Compestation costs rose 1.9% in the quarter, while real
compensation was up 0.4%. Both measures were above the pace in the
previous quarter. The price deflator rose 0.6% in the quarter.
Year-over-year growth in productivity now stands at 6.3% for the
first quarter, compared with 5.6% in the fourth quarter and the
strongest year/year growth pace since the first quarter of 1962.
Unit labor costs now stand at a -3.7% year-over-year pace, compared
with the 4.6% drop in the previous quarter.
** Market News International Washington Bureau: 202-371-2121 **
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