Watch CBSN Live

​U.S. productivity keeps going wrong way

Car-insurance costs are rising fast; Yellen's views on economy send stocks higher; Verizon reportedly bids $3 billion for Yahoo
Car-insurance costs are rising fast; Yellen's... 01:09

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.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.