U.S. Productivity Fell in Fourth Quarter as Labor Costs Rose

The productivity of U.S. workers fell in the fourth quarter by the most in four years, while labor expenses accelerated as companies added workers and boosted hours, revised Labor Department figures showed today.

The measure of employee output per hour decreased at a 1.9 percent annual rate after a 3.1 percent third-quarter gain, the agency said in Washington. The median forecast in a Bloomberg survey called for a 1.6 percent drop in productivity after a previously reported 2 percent decrease. Expenses per worker increased at a 4.6 percent rate, more than first estimated.