WASHINGTON — The decline in U.S. nonfarm productivity in the second quarter was twice as much as originally reported, according to updated figures the Labor Department released Thursday.
Nonfarm productivity fell 1.8%, a revised figure that replaces the 0.9% decline reported in the quarter’s preliminary reading last month. Steven Wood, chief economist at Insight Economics, said the decrease is the first since the third quarter of 2008
Unit labor costs were revised upward to reflect a 1.1% gain during the quarter ending June 30, instead of the 0.2% gain reported in preliminary data last month.
“Productivity fell moderately in the second quarter after soaring in the previous five quarters,” Wood said. “This is a typical post-recession pattern where employers are initially hesitant to hire even as output begins to expand, but then more closely align hiring with output growth.”
