U.S. worker productivity rises in 3rd Quarter
The US worker productivity rose in the third quarter, outpacing employment gains. Nonfarm productivity, which measures hourly output per worker, surged by 4.6% annualized rate last quarter, the Labor Department reported on Tuesday.
Moreover, the minimal descending revision from the 4.9% pace predicted last month preceded a 10.6% growth rate in the second quarter, the fastest growth pace recorded since the first quarter of 1971.
In a Reuters poll, economists had predicted productivity growth would be unrevised at a 4.9% rate in the third quarter. The COVID-19 recession has destroyed lower-wage industries, including leisure and hospitality, which economists say tend to be less productive.
Productivity increased at a 4.0% rate, if it’s on a year-on-year basis, looking at the third quarter of 2019, instead of the 4.1% pace reported last month.
U.S. financial markets were unfazed by the figures.