US workers increase productivity

Reported by AAP
Wednesday, August 8, 2012

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US workers increased their productivity in the April-June quarter, although the gains are probably not enough to slow hiring.

The Labor Department says productivity rose at an annual rate of 1.6 per cent in the second quarter. It fell 0.5 per cent in the first quarter, a smaller decline than first estimated.

Productivity is the amount of output per hour worked. Rising productivity can slow job creation because it means companies are getting more from their current workforces and don't need to add workers.

But productivity is increasing at a relatively weak pace. It is up only 1.1 per cent compared to a year ago. Since 1947, productivity gains have averaged 2.2 per cent a year.

Labour costs rose 1.7 per cent. That's below the first quarter's revised 5.6 per cent gain.

23/05/2013 09:38Sydney, Australia. 23 May,2013
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