WASHINGTON – U.S. productivity in the spring rose at the fastest pace since late 2013, while labor costs declined.
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The Labor Department says worker productivity increased at an annual rate of 3.3 percent in the April-June quarter. That was a rebound from the first quarter when productivity had fallen at a 1.1 percent rate.
Labor costs fell at a 1.4 percent rate in the second quarter, indicating that wages are not rising even as unemployment declines.
The 3.3 percent productivity gain represented an upward revision from a month ago when the government had estimated a more moderate rebound of 1.3 percent.
Even with the strong gain in the second quarter, productivity over the past year has increased by just 0.7 percent, continuing a weak trend seen through this recovery.