First-Quarter Productivity Improves 2.2%

First-quarter U.S. worker productivity improved 2.2%, the Labor Department said Wednesday.

The increase came as employers cut payrolls and hours during a period of weak economic growth, Bloomberg reported. Productivity is a measure of how much an employee produces for every hour of work.

The level followed the fourth-quarter’s 2.8% gain. Economists had forecast a first-quarter level of 1.5%, Bloomberg 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.