Productivity Up 4.9%, Most in Four Years

Washington, DC, November 7, 2007--Productivity in the third quarter rose at an annual rate of 4.9%, according to the Labor Department. The increase was the largest in four years, up from a revised 2.2% increase in second quarter.

Labor expenses dropped at a 0.2% pace, the first decrease in more than a year.

Economists were expecting productivity to increase at a 3.2% pace and unit labor costs to slow to a 1% t pace.

Compensation for each hour worked increased at an annual rate of 4.7% in the third quarter, compared with a 4.4% rate in the prior three months.

Productivity at non-financial corporations climbed at a 3.8% rate in the second quarter, compared with 0.7% the previous three months. These figures are released with a one-quarter lag.

Among manufacturers, productivity increased at a 4.6% pace last quarter, compared with a gain of 2.4%.