U.S. Productivity Fell Last Quarter to Extend Sluggish Run
U.S. Productivity Slows as Unit Labor Costs Jump 2%
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Productivity in the U.S. unexpectedly fell for the first time since early 2016 as working hours slightly outpaced output, underscoring a sluggish pace of efficiency gains during this expansion, a Labor Department report showed Thursday.
The data reinforce the trend of relatively paltry gains since the last recession ended, limiting the scope for economic growth to pick up without causing an unwanted acceleration in inflation. For the full year, productivity rose 1.2 percent, in line with the pace over the last decade.