|US Manufacturing Productivity Plummets|
|by Tom McGregor||Wed, Jun 6, 2012, 05:55 PM|
U.S. labor productivity has dropped by the largest amount in a year from January through March. The steeper fall than first estimated hints that companies should hire more to boost consumption.
According to the Houston Chronicle, “the Labor Department said Wednesday that productivity fell at an annual rate of 0.9 percent in the first quarter. That’s faster than the initial 0.5 percent annual decline for the period estimated last month.”
Productivity is calculated as the output per hour of work. It dropped at a faster rate than first estimated, since revisions showed less output and slightly more hours worked.
As reported by the Houston Chronicle, “labor costs rose 1.3 percent in the January-March quarter, down from an initial estimate of 2 percent. The decline was largely due to smaller compensation costs.”
The estimates disclose the government’s second and final study at first-quarter labor costs and productivity.
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