RTTNews - With hours worked falling at a faster pace than output, the Labor Department released a report on Tuesday showing a much bigger than expected increase in productivity in the second quarter. At the same time, the report also showed a steep drop in unit labor costs.
The report showed that productivity increased by 6.4 percent in the second quarter compared to a downwardly revised 0.3 percent increase in the first quarter. Economists had expected productivity to increase by 5.5 percent.
Meanwhile, the Labor Department also said that unit labor costs fell by 5.8 percent in the second quarter following a revised 2.7 percent decrease in the first quarter. The steep drop in costs exceeded the expectations of economists, who had expected a 2.5 percent drop.
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