1Q Productivity Climbs Less Than Originally Reported

First-quarter U.S. worker productivity rose 1%, down from an earlier estimate, the Labor Department said Wednesday.

The level compared with an earlier first-quarter estimate of 1.7% and a 2.1% gain in the fourth quarter.

The revised figure matched economists’ forecasts, Bloomberg reported.

Productivity is a measure of how much an employee produces for every hour of work.

Among manufacturers, productivity gained 2.4% following a 1.9% rate in the fourth quarter.

Labor costs rose 1.8, three times the level originally reported, Labor said.
 
When worker efficiency improves at a slower pace and labor becomes more expensive, companies may raise prices in order to guard their profits, contributing to more rapid inflation.