Productivity Surges Again in Fourth Quarter

Washington, DC, March 3, 2011 -- Productivity grew in the fourth quarter grew at the fastest pace in nine months, according to the Labor Department.

Productivity grew at an annual rate of 2.6 percent in the fourth quarter while labor costs were falling at an annual rate of 0.6 percent, the Labor Department said.

For the year, productivity grew 3.9 percent, the biggest increase in eight years.

The 3.9 percent jump in productivity in 2010 followed a 3.7 percent rise in 2009. Both figures were the highest since productivity rose 4.6 percent in 2002, the largest increase in a half century.

The two-year productivity surge came at the expense of many workers, which means productivity could fall this year as companies add workers.