U.S. Worker Productivity Jumps to 8.1% Rate

[Stay on top of transportation news: .]

U.S. workers’ productivity surged in the third quarter to an annual rate of 8.1%, increasing at the fastest in six years, the Labor Department said Thursday.

The rate followed an originally reported 6.4% rate in the second quarter, Labor said.

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

The level was lower than economists’ forecasts of an 8.5% annual rate, Bloomberg reported.



Among manufacturers, productivity rose at a 13% rate, the largest increase since records began in 1987.

Labor costs fell at a 2.5% rate, capping the biggest 12-month drop in seven years.

Productivity rose 4% compared with last year’s thirdquarter, the biggest year-over-year increase in five years, 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.

Ìý

Trending

Newsletter Signup

Subscribe to Transport Topics

 

Hot Topics