empty
 
 

2021.05.0613:52:00UTC+00U.S. Labor Productivity Rebounds 5.4% In Q1, More Than Expected

After reporting a sharp pullback in U.S. labor productivity in the previous quarter, the Labor Department released a report on Thursday showing productivity rebounded by more than expected in the first quarter of 2021.

The Labor Department said labor productivity spiked by 5.4 percent in the first quarter after tumbling by a revised 3.8 percent in the fourth quarter of 2020.

Economists had expected productivity to surge up by 4.3 percent compared to the 4.2 percent nosedive that had been reported for the previous quarter.

The rebound in productivity, a measure of output per hour, came as output shot up by 8.4 percent compared to a 2.9 percent increase in hours worked.

"Looking ahead, we expect productivity to strengthen in coming quarters and remain well supported as the economy experiences a mini boom in activity and the labor market lags to overall economic recovery," said Kathy Bostjancic, Chief US Financial Economist at Oxford Economics.

She added, "Stronger productivity gains should buffer companies' bottom lines against rising input costs and further boost profit growth this year amid an expected surge in companies' sales."

Meanwhile, the report showed unit labor costs edged down by 0.3 percent in the first quarter after soaring by a revised 5.6 percent in the fourth quarter.

Unit labor costs were expected to slump by 1.0 percent compared to the 6.0 percent jump that had been reported for the previous quarter.

The modest decrease in unit labor costs came as a 5.1 percent surge in hourly compensation was offset by the spike in productivity.

Real hourly compensation, which takes into account changes in consumer prices, increased by 1.3 percent in the first quarter.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback