WASHINGTON — U.S. non-farm productivity fell 0.7% in the second quarter, initially estimated as a 0.3% decrease, the Labor Department said Thursday.

First-quarter productivity was unrevised at a 0.6% decline.

Unit labor costs, a ratio of hourly compensation to labor productivity, were up 3.3%, an increase from the preliminary 2.2% estimate for the quarter but down from revised 6.2% growth in the first quarter. Labor costs have risen 1.9% over the last four quarters.

Economists expected productivity to fall 0.5% and unit labor costs to increase 2.4%.

Workers’ output was up 1.3%.  Hours worked rose 2.0%. Real hourly compensation fell 1.4% after a 0.3% first-quarter rise.

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