US productivity up at 3.1 per cent rate in third quarter
WASHINGTON — The productivity of American workers rose in the July-September quarter at the fastest pace in two years, while labour costs slowed.
Productivity increased at a 3.1 per cent rate in the third quarter, the Labor Department reported Thursday. It was a significant improvement from the previous three quarters when productivity had fallen. Unit labour costs edged up a modest 0.3 per cent in the third quarter, compared to a 3.9 per cent jump in the second quarter.
The productivity figure was the best showing since a 4.2 per cent gain in the third quarter of 2014. But the rebound was expected to be temporary. Strong gains in productivity are needed to boost Americans’ living standards.
Economists forecast that productivity will quickly fall back to the tepid gains seen since the 2007-2009 recession.