- Associated Press - Tuesday, August 10, 2010

WASHINGTON (AP) — Productivity dropped this spring for the first time in more than a year, a sign that companies may need to hire more workers in the near future.

The Labor Department says worker productivity declined at an annual rate of 0.9 percent in the second quarter after posting large gains throughout 2009. Unit labor costs edged up 0.2 percent in the second quarter, the first increase since the spring of 2009.

Productivity rose by large amounts during the recession. Companies slashed their payrolls and pushed unemployment up to the highest levels in more than two decades. Economists said a slowing in productivity would be welcome development if it translates into more hiring.


Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.


Click to Read More and View Comments

Click to Hide