FOREX TradingCharts.com

Financial News: U.S. Labor Productivity Slumps 2.5% In Q1, Much

U.S. Labor Productivity Slumps 2.5% In Q1, Much Less Than Expected

05/07/2020 - 09:38:00 (RTTNews)

(RTTNews) - A report released by the Labor Department on Thursday showed U.S. labor productivity pulled back by much less than expected in the first quarter.

The Labor Department said labor productivity slumped by 2.5 percent in the first quarter after jumping by 1.2 percent in the fourth quarter of 2019. Economists had expected productivity to plunge by 5.5 percent.

The decrease in productivity, a measure of output per hour came as output plummeted by 6.2 percent compared to a 3.8 percent slump in hours worked.

Paul Ashworth, Chief U.S. Economist at Capital Economics, noted the steeper drop in output was partly because the employment numbers for March are based on the monthly survey taken around the 12th of the month, whereas the output numbers include all of March.

"That makes a big difference when most lockdowns only began around the middle of that month," Ashworth said.

He added, "We might even see a rise in the average level of productivity during this recession, because the job losses have been concentrated in low-productivity sectors like retail and food services, which account for much bigger shares of total employment than GDP."

Meanwhile, the report said unit labor costs skyrocketed by 4.8 percent in the first quarter after climbing by 0.9 percent in the fourth quarter. Labor costs had been expected to surge up by 4.0 percent.

The spike in labor costs in the first quarter reflected the pullback in productivity as well as a 2.2 percent jump in hourly compensation.

Real hourly compensation, which takes into account changes in consumer prices, climbed by 0.9 percent in the first quarter.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2020 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


Greece Factory Activity Falls At Slower Pace (27 min(s), 59 sec(s) ago)
(RTTNews) - Greece's manufacturing activity logged a slower fall in May as the economy began t ...Full Story»

Portugal Industrial Production Falls For Second Month (38 min(s), 59 sec(s) ago)
(RTTNews) - Portugal's industrial production declined for the second straight month in April, ...Full Story»

Italy's Manufacturing Downturn Eases In May (44 min(s), 59 sec(s) ago)
(RTTNews) - Italy's manufacturing activity downturn eased in May as coronavirus, or Covid-19, ...Full Story»

Hong Kong Retail Sales Continue To Fall In April (01 hr(s), 45 min(s), 59 sec(s) ago)
(RTTNews) - Hong Kong's retail sales fell for the fifteenth straight month in April, figures f ...Full Story»

Czech Manufacturing Sector Contracts Further In May (01 hr(s), 55 min(s), 59 sec(s) ago)
(RTTNews) - The Czech Republic's manufacturing sector contracted at the second sharpest pace s ...Full Story»

Spain's Manufacturing Activity Contracts Sharply In May (02 hr(s), 14 min(s), 59 sec(s) ago)
(RTTNews) - Spain's manufacturing sector remained in deep inside contraction zone in May amid ...Full Story»

Poland Manufacturing Sector Continues To Shrink In May (02 hr(s), 50 min(s), 59 sec(s) ago)
(RTTNews) - Poland's manufacturing sector contracted at the second sharpest pace since January ...Full Story»

Turkey Manufacturing Sector Contraction Slows In May (02 hr(s), 50 min(s), 59 sec(s) ago)
(RTTNews) - Turkey's manufacturing sector contracted in May amid coronavirus pandemic, but the ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

Greece Factory Activity Falls At Slower Pace

06/01/2020 - 09:20 AM (RTTNews)
(RTTNews) - Greece's manufacturing activity logged a slower fall in May as the economy began t ...Full Story>>

Portugal Industrial Production Falls For Second Month

06/01/2020 - 09:09 AM (RTTNews)
(RTTNews) - Portugal's industrial production declined for the second straight month in April, ...Full Story>>

Italy's Manufacturing Downturn Eases In May

06/01/2020 - 09:03 AM (RTTNews)
(RTTNews) - Italy's manufacturing activity downturn eased in May as coronavirus, or Covid-19, ...Full Story>>

Hong Kong Retail Sales Continue To Fall In April

06/01/2020 - 08:02 AM (RTTNews)
(RTTNews) - Hong Kong's retail sales fell for the fifteenth straight month in April, figures f ...Full Story>>

Czech Manufacturing Sector Contracts Further In May

06/01/2020 - 07:52 AM (RTTNews)
(RTTNews) - The Czech Republic's manufacturing sector contracted at the second sharpest pace s ...Full Story>>
Copyright © 2020. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.