US productivity up modest 1.9 per cent in fourth quarter
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WASHINGTON — U.S. productivity grew at a rate of 1.9 per cent in the fourth quarter, a slight improvement over the third quarter. Labor costs rose 2 per cent, the strongest gain since the beginning of 2018.
The Labor Department says the result from the October-December period was slightly better than a 1.8 per cent rise in the third quarter. For the full year, productivity rose 1.3 per cent, a small improvement from a 1.1 per cent gain in 2017. It was the best showing since a 3.4 per cent productivity surge in 2010.
Productivity is the amount of output per hour of work. The strong showing in 2010 was an exception in the current recovery. Productivity overall has been extremely weak, and economists consider boosting productivity growth as the key challenge facing the U.S. economy.
