Productivity, labor costs up in Q1

The U.S. Bureau of Labor Statistics reports that business productivity and labor costs both increased in the first quarter of 2008.

Productivity increased 1.9 percent in the business sector and 2.2 percent in the nonfarm business sector, while unit labor costs increased 2.2 percent in the business sector, according to the BLS. Productivity growth increased faster than in the fourth quarter of 2007. The growth in productivity is attributed to a decrease in hours worked.

Productivity increased 4.1 percent in manufacturing, including 2.3 percent in durable goods manufacturing and 7 percent in nondurable goods manufacturing, according to the BLS.

The decrease in hours worked was the largest since the second quarter of 2003, according to the BLS.