Labor productivity in the U.S. rebounded in the second quarter, according to a report released by the Labor Department on Tuesday, although the pace of growth fell short of economist estimates.
The report said labor productivity climbed by 1.3 percent in the second quarter following a revised 1.1 percent decrease in the first quarter.
Economists had expected productivity to jump by 1.6 percent compared to the 3.1 percent drop that had been reported for the previous quarter.
The rebound in productivity, a measure of output per hour, partly reflected a notable increase in output, which surged up by 2.8 percent in the second quarter.
The report also showed a significant upward revision to output in the first quarter, as the revised data showed a 0.5 percent increase compared to the previously reported 1.6 percent decrease.
Hours worked climbed by 1.5 percent in the second quarter following a 1.6 percent increase in the previous quarter.
Additionally, the Labor Department said unit labor costs rose by 0.5 percent in the second quarter after surging up by 2.3 percent in the first quarter. The increase in costs matched economist estimates.
The modest increase in labor costs came as hourly compensation increased by 1.8 percent in the second quarter after rising by 1.1 percent in the first quarter.
Meanwhile, real hourly compensation, which takes changes in consumer prices into account, fell by 1.1 percent in the second quarter after soaring 4.2 percent in the previous quarter.
Compared to the same quarter a year ago, productivity edged up by 0.3 percent in the second quarter, as output climbed by 2.8 percent and hours worked increased by 2.6 percent.
Unit labor costs were up by 2.1 percent year-over-year in the first quarter amid a 2.4 increase in hourly compensation.
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