U.S. Labor Productivity Revised To Unchanged In Q1

Revised data released by the Labor Department on Monday showed that U.S. labor productivity was unchanged in the first three months of the year.

The Labor Department said productivity came in flat in the first quarter compared to the previously reported 0.6 percent decrease. The revision matched economist estimates.

The upward revision to productivity, a measure of output per hour, came as output increased by more than initially estimated.

The report said output climbed by 1.7 percent versus the previously reported 1.0 percent increase. Hours worked also rose by 1.7 percent, slightly faster than the initial estimate of 1.6 percent growth.

Productivity jumped by 1.8 percent in the fourth quarter, as output spiked by 2.7 percent and hours worked climbed by 1.0 percent.

The report also said unit labor costs surged up by 2.2 percent in the first quarter versus the previously reported 3.0 percent jump. Economists had expected the pace of growth to be revised to 2.5 percent.

The downwardly revised pace of cost growth primarily reflected the revision to productivity, although the increase in hourly compensation was also downwardly revised to 2.2 percent from 2.4 percent.

Real hourly compensation, which takes changes in consumer prices into account, fell by 0.9 percent compared to the previously reported 0.8 percent drop.

Revised data showed that unit labor costs plunged by 4.6 percent in the fourth quarter amid a 3.0 percent slump in hourly compensation. Unit labor costs were previously said to have risen by 1.3 percent.

Compared to the same quarter a year ago, productivity was up by 1.2 percent in the first quarter, as output climbed by 2.5 percent and hours worked increased by 1.3 percent.

Unit labor costs were up by 1.1 percent year-over-year in the first quarter amid a 2.3 percent jump in hourly compensation.