US labour productivity declined for the second consecutive quarter as overall economic output contracted and employers spent more on labor as they added workers.
US nonfarm labor productivity is a measure of goods and services produced in the US per hour worked, fell at a seasonally adjusted annual rate of 4.6% annualized rate last quarter, after having declined by 7.4% in the first three months of the year, the report showed. Productivity fell at 2.5% pace from a year ago.
Large shifts in the composition of the workforce in the wake of the COVID-19 pandemic have made it harder to measure underlying productivity growth, which some economists put at about 1.0% or less, making the Fed’s fight against inflation more difficult.
Tags FED inflation Nonfarm productivity US Economy USD
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