U.S. productivity falls 2.5% in first quarter, biggest drop since late 2015
WASHINGTON (MarketWatch) - U.S. productivity fell at a 2.5% annual clip in the first quarter, the biggest drop since the fourth quarter of 2015, the government said Thursday. Economists surveyed by MarketWatch had projected a 5.5% decline. Output in the second quarter fell 6.2%, the biggest drop since 2009. Hours worked fell 3.8%, also the biggest drop since the Great Recession. Unit-labor costs rose 4.8% in the first quarter. U.S. productivity has increased at an anemic 0.3% pace year over year. Federal Reserve Chairman Jerome Powell said last week he was worried the coronavirus pandemic might damage the economy's productive capacity.
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