U.S. Labor Productivity Climbs 2.3% In Q2, Less Than Previously Estimated

(RTTNews) - Labor productivity in the U.S. increased by less than previously estimated in the second quarter, the Labor Department revealed in a revised report released on Thursday.

The report said productivity increased by 2.3 percent in the second quarter compared to the preliminary estimate of 2.5 percent growth. Economists had expected the pace of growth to be revised to 2.4 percent.

Despite the downward revision, the increase still reflects a notable rebound from the 4.5 percent drop seen in the first quarter.

The smaller than previously estimated increase in productivity, a measure of output per hour, was partly due to a downward revision to the pace of output growth.

The revised data said output rose by 5.0 percent in the second quarter compared to the previously reported 5.2 percent increase. Hours worked increased by a downwardly revised 2.6 percent.

Meanwhile, the Labor Department also said unit labor costs edged down by a revised 0.1 percent in the second quarter versus the 0.6 percent increase originally reported.

The modest drop in unit labor costs in the second quarter came on the heels of an 11.6 percent jump in labor costs in the first quarter.

Hourly compensation increased by a downwardly revised 2.3 percent in the second quarter compared to the 6.6 percent jump in the previous quarter.

Real hourly compensation, which takes changes in consumer prices into account, was also revised to show a 0.7 percent drop in the second quarter compared to the previously reported 0.1 percent uptick.

Compared to the same quarter a year ago, productivity rose by 1.1 percent in the second quarter, as output and hours worked increased by 3.2 percent and 2.0 percent, respectively.

Unit labor costs were up by 1.7 percent year-over-year in the second quarter amid a 2.8 percent increase in hourly compensation.