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​U.S. productivity keeps going wrong way

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WASHINGTON - American workers were less productive again in the January-March quarter, although the decline wasn't as severe as first thought, and labor costs climbed at a faster pace than initial estimates.

The Labor Department says productivity declined at an annual rate of 0.6 percent in the first quarter after a 1.7 percent drop in 2015's fourth quarter. The government first estimated that productivity fell at a 1 percent rate.

Labor costs for employers rose at a 4.5 percent rate in the first quarter, even faster than the 4.1 percent gain first reported.

Productivity has been weak for the past five years, a troubling development because productivity growth is the key factor supporting rising living standards. The rise in labor costs is coming after an extended period of weakness.

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