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US worker productivity grew 1.9 pct. rate in Q3

US worker productivity grew 1.9 pct. rate in Q3

CREATED Nov. 1, 2012

WASHINGTON (AP) -- U.S. worker productivity grew at the same modest rate this summer as in spring, a sign that companies may be nearing the limits on how much output they can get from their employees.

The Labor Department says productivity increased at a modest 1.9 percent annual rate from July through September, matching the April-June quarter rate. Labor costs fell at a 0.1 percent rate after having risen at a 1.7 percent rate in the second quarter.

Productivity is the amount of output per hour of work.  Weaker productivity can be a hopeful sign for job creation. It often means companies can't squeeze much more output from their staffs and must hire to meet demand.
 

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