Productivity during the first quarter was up 1.9 percent in the business sector and 2.2 percent in the non-farm business sector, according to the U.S. Department of Labor.
The department measures productivity by output per hour of all employees. The department said productivity gains in both sectors were due to declines in hours worked. In the business sector, output edged up 0.2 percent while hours fell 1.6 percent. In nonfarm businesses, output rose 0.4 percent and hours declined 1.8 percent. In both sectors, productivity grew faster than in the fourth quarter of 2007, when output per hour rose 0.9 percent in the business sector and 1.8 percent in the nonfarm business sector.
The department said productivity increased 4.1 percent in manufacturing during the quarter. The increased productivity in manufacturing was the result of a 4.2 percent decline in hours worked in the sector and an output decline of 0.3 percent.
