The efficiency of US workers was revised lower in the first quarter, while the cost of hiring workers was higher than earlier thought, the Labor Department said today. Both hours worked and real compensation costs fell.
US workers increased their productivity by a revised 1 per cent in the first quarter, as economists had expected, and down from the 1.7 per cent increase in the initial estimate.
As a result, unit labor costs were revised higher, increasing by 1.8 per cent, higher than the 1.4 per cent gain economists had expected and triple the 0.6 per cent gain in the earlier estimate.
Hours worked fell for the first time in almost four years, dropping 0.4 per cent in the first quarter.
Workers' compensation costs adjusted for inflation fell 1 per cent in the first quarter of this year after a 13.6 per cent surge in the fourth quarter of 2006.
That surge, however, was related to unusually high bonus payments and stock option exercises. Over the past year, real compensation costs were up 0.7 per cent.
Year-over-year, US workers productivity was up just 1 per cent, continuing the relatively weak productivity gains of recent years.
Unit labor costs have risen 2.2 per cent since the fourth quarter of last year, the smallest increase since the 12 months ending in the fourth quarter of 2005.