NEWS SUMMARY: US worker productivity down

AP News
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Posted: Jun 06, 2012 3:16 PM

PRODUCTIVITY DOWN: U.S. worker productivity fell at an annual rate of 0.9 percent in the January-March period, the Labor Department said. It was the largest drop in a year and greater than the initial 0.5 percent estimate.

REASON: Productivity is the amount of output per hour of work. It fell at a faster rate than first estimated because revisions showed less output and slightly more hours worked.

OUTLOOK: Less productivity is bad for corporate profits. But it could be good news for jobseekers. It could show that companies are struggling to squeeze more output from their workers and must hire if demand rises.

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