Productivity Jumps 1.6%; Labor Costs Rises 1.0%

WASHINGTON — U.S. non-farm productivity rose 1.6% in the first quarter of 2011, according to the Labor Department’s first estimate released Thursday after a revised 2.9% gain for the fourth quarter of 2010.

Unit labor costs, the ratio of hourly compensation to productivity, rose 1.0% after a revised decline of 1.0% in the fourth quarter. Output and hours worked were both revised lower.

Economists were expecting a 1.0% increase in productivity and a 0.8% increase in unit labor costs.

Workers output fell to a 3.1% gain from the 4.4% rise reported last quarter.

Hours worked were up 1.4% in the first quarter.

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