Worker Productivity Slows in First Quarter

Washington, DC, June 2, 2011 -- U.S. worker productivity slowed in the first quarter and labor costs incrfeased as companies boosted employment to meet rising demand, the Labor Department said.

The measure of employee output per hour increased at a 1.8% annual rate after a 2.9% gain in the prior three months, revised figures from the Labor Department showed.

Employee expenses climbed at a 0.7% rate after dropping 2.8% the prior quarter.

Rising costs of inputs such as energy and components means companies may look to contain labor costs, a sign hiring may not accelerate.