U.S. 2Q Nonfarm Productivity Fell 4.6%
By Jeffrey Sparshott
U.S. labor productivity declined for the second consecutive
quarter as overall economic output contracted and employers spent
more on labor as they added workers.
U.S. nonfarm labor productivity--a measure of goods and services
produced in the U.S. per hour worked--fell at a seasonally adjusted
annual rate of 4.6% in the second quarter from the prior quarter,
the Labor Department said Tuesday. Economists surveyed by The Wall
Street Journal had estimated a drop of 5%.
Unit labor costs, a measure of worker compensation and
productivity, increased at a 10.8% pace in the second quarter from
the prior quarter, Labor said. Economists had expected a 9.5%
Quarterly productivity figures are volatile but the weak
second-quarter number follows a 7.4% pullback in the first quarter,
the sharpest drop in 74 years. Together with rising labor costs,
the report points to the challenges for the Federal Reserve's
efforts to tamp down inflation that is running at a four-decade
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(END) Dow Jones Newswires
August 09, 2022 09:02 ET (13:02 GMT)
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