U.S. Productivity Sees Biggest Rise in Q2 Since 2009
Worker productivity increased at its fastest pace in 11 years
U.S. worker productivity increased at its fastest pace in 11 years in the second quarter as hours plunged amid the COVID-19 (novel coronavirus) pandemic, leading to an acceleration in labor costs.
The Department of Labor said on Friday nonfarm productivity, which measures hourly output per worker, increased at a 7.3 percent annualized rate last quarter, its largest rise since the second quarter of 2009. Productivity fell at a 0.3 percent pace in the January-March period. Hours worked tumbled at a 43.0 percent rate in the second quarter, the largest since the series started in the first quarter of 1947.
Economists polled by Reuters had forecast productivity rebounding at a 1.5 percent rate in the second quarter.
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