WASHINGTON — Productivity continued to increase, although at a slightly slower pace, in the second quarter, the Labor Department reported today.
Overall business productivity rose 2.3%, compared with 2.4% in the first quarter. Hourly compensation rose 3.8%, down from 5% during the first three months.
Nonfarm business productivity increased 2.2% from April 1-June 30. During the first three months, it increased by 2.6%. Hourly compensation in this sector rose 3.6% in the second quarter, compared to a 5.2% increase in the first quarter.
All the news wasn't bright. Manufacturing productivity fell 1.4%, following a 3.4% increase during the first quarter. Productivity in the manufacturing of durable goods fell 3.5%, while productivity in nondurable goods increased 0.7%.
Manufacturing represents about 12% of all business-sector employment, the department said. Hourly compensation in this sector rose 4.6%, compared with 6.2% in the first quarter.
Unit labor costs rose 1.3% and labor costs increased 1.5% from one year ago.
Productivity has continued to increase even as other parts of the economy have slowed. From 2000-2007, it increased at an average annual rate of 2.7%.
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