3 May 2007, 17:53  US: Q1 , Productivity +1.7 %

US workers increased their productivity by 1.7 pct in the first quarter, almost triple the 0.6 pct increase economists had expected. Unit labor costs, or the costs of hiring workers, rose 0.6 pct in the first quarter, well below the 1.5 pct gain economists had expected. Workers suffered a decline in their real inflation adjusted income, as real hourly wages fell 1.5 pct in the quarter, slightly offsetting a huge 10.8 pct gain in the prior quarter. The fourth quarter increase in labor costs and incomes was exaggerated by year-end stock options and bonuses given to private sector workers. Productivity has risen 1.1 pct since the first quarter of 2006, while unit labor costs have risen 1.3 pct in the past year. Productivity in the fourth quarter was revised upward to a 2.1 pct gain, compared with a 1.6 pct gain estimated earlier. Unit labor costs in the fourth quarter were revised lower to a 6.2 pct gain, compared with a 6.6 pct gain estimated earlier.

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