Labor productivity in the U.S. declined by less than initially estimated in the first quarter, according to a report released by the Labor Department on Tuesday.
The report said productivity dropped by 0.6 percent in the first quarter compared to the 1.0 percent decrease initially reported. The revised decrease matched economist estimates.
The decrease in productivity, a measure of output per hour, came as output climbed by 0.9 percent but hours worked jumped by 1.5 percent.
The Labor Department also said unit labor costs surged up by 4.5 percent in the first quarter, reflecting an upward revision from 4.1 percent jump originally reported. Economists had expected the increase in costs to be unchanged.
The increase in labor costs reflected a jump in hourly compensation, which soared by 3.9 percent in the quarter.
Real hourly compensation, which takes changes in consumer prices into account, also showed a notable 4.2 percent increase.
Compared to the same quarter a year ago, productivity edged up by 0.7 percent in the first quarter, as output jumped by 2.3 percent and hours worked increased by 1.6 percent.
Unit labor costs were up by 3.0 percent year-over-year in the quarter amid a 3.7 percent jump in hourly compensation.
by RTT Staff Writer
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