Second-Quarter Productivity Rises 4.3%

Second-quarter U.S. worker productivity rose at a 4.3% annual rate, more than previously estimated, the Labor Department said Thursday.

The level was previously estimated at 2.2% and followed a 2.6% first-quarter gain.

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

Economists had forecast a rise of 3.5%, Bloomberg reported.

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.