A report released by the Labor Department on Wednesday showed the pace of growth in U.S. labor productivity in the fourth quarter of 2016 was unrevised from the preliminary estimate.
The report said labor productivity climbed by 1.3 percent in the fourth quarter after jumping by 3.3 percent in the third quarter. Economists had expected the pace of productivity growth to be upwardly revised to 1.5 percent.
The increase in productivity, a measure of output per hour, came as output growth exceeded the increase in hours worked.
The jump in output was upwardly revised to 2.4 percent from 2.2 percent, while the increase in hours worked was upwardly revised to 1.0 percent from 0.9 percent.
The Labor Department also said unit labor costs advanced by an unrevised 1.7 percent in the fourth quarter after rising by 0.7 percent in the third quarter. The increase in unit labor costs had been expected to be downwardly revised to 1.6 percent.
The increase in labor costs came as hourly compensation spiked by 3.0 percent in the fourth quarter after soaring by 4.1 percent in the third quarter.
Meanwhile, real hourly compensation, which takes changes in consumer prices into account, dipped by 0.4 percent in the fourth quarter following a 2.4 percent jump in the third quarter.
Compared to the same quarter a year ago, productivity was up by 1.0 percent in the fourth quarter, as output climbed by 2.2 percent and hours worked increased by 1.2 percent.
Unit labor costs were up by 2.0 percent year-over-year in the quarter amid a 3.0 percent jump in hourly compensation.
by RTT Staff Writer
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