Productivity Slides in Second Quarter

Washington, DC, Sept. 1, 2011 -- Worker productivity fell in the second quarter more quickly than previously thought and labor costs increase at a faster rate.

The Labor Department said that productivity declined at an annual rate of 0.7% in the quarter. That was a downward revision from the 0.3% decline first estimated a month ago and the second straight quarterly decline.

Labor costs rose at an annual rate of 3.3%, faster than the 2.4% increase originally reported.

The decline in productivity could lead some companies to hire more people to keep up with demand.