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Manufacturing labor productivity eked out a 0.2% gain at the annual rate in the first quarter, according to revised data. With the U.S. economy grappling with the economic impacts of COVID-19, output fell sharply at rates not seen since the second quarter of 2010, dropping 6.3%.
The number of hours worked decreased 6.6%, with unit labor costs up 6.9%. Labor productivity for durable goods manufacturers declined 3.5% in the first quarter, with output off 10.2%.
In contrast, output per worker for nondurable goods firms rose 4.3% in the first quarter despite output and hours worked dropping by 2% and 6.1%, respectively.
Meanwhile, nonfarm business labor productivity declined 0.9% in the first quarter, the steepest decrease since the fourth quarter of 2015. Output fell 6.5%, the largest decline in 11 years, with unit labor costs up 5.1%.
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