Labor productivity in the United States saw an unexpected rise in the second quarter, as reported by the Labor Department on Thursday.
The Labor Department detailed that labor productivity climbed by 2.3% during the second quarter, following a revised increase of 0.4% in the first quarter.
Economists had forecasted a 1.7% increase in labor productivity, in comparison to the initially reported 0.2% rise for the previous quarter.
This significant boost in labor productivity, which measures the output per hour worked, coincided with a 3.3% rise in output against a 1.0% increase in hours worked.
Conversely, the report indicated that unit labor costs went up by 0.9% in the second quarter, after a substantial revised increase of 3.8% in the first quarter.
Economists had predicted a 1.8% rise in unit labor costs, as opposed to the previously reported 4.0% spike in the prior quarter.
The less-than-expected increase in unit labor costs can be attributed to the 3.3% surge in hourly compensation, which was partially offset by the productivity gains.
Real hourly compensation, adjusted for changes in consumer prices, increased by 0.4% in the second quarter, mirroring the rise observed in the first quarter.
