WASHINGTON — Fourth quarter nonfarm productivity was revised up slightly to a flat reading, but more importantly unit labor costs growth was revised solidly higher to a 2.5% pace.
In addition, third quarter productivity is now up 2.6%, slightly lower than the 2.7% gain previous reported. At the same time, unit labor cost growth was revised up to a 1.0% rate for the quarter from a 0.1% decline previous reported, so the report overall reflects a stronger pace of labor cost growth than previously suggested.
Productivity now stands up 1.1% from a year earlier, compared with a 1.4% pace in the third quarter. Unit labor costs were up 1.7% year/year in the fourth quarter, a sharp improvement after declines in the previous two quarters.
