The report also showed that unit wage costs, or how much workers are paid per unit of production, rose by 11.6% during the quarter. This reflects a 3.2% increase in hourly compensation and a 7.5% decrease in productivity.
Analysts asked by Refinitiv had estimated a 5.4% decline in productivity and a 9.9% increase in labor costs.
“Growth in labor productivity outside agriculture is always exposed to short-term fluctuations, since it is derived from the growth in production and hours worked, which in a given quarter can change at different rates,” she wrote. “As with many things, the extreme conditions of the pandemic economy continue to magnify these traits.”
“Once you get over all this, the US economy is growing healthy,” she said.
Anneken Tappe contributed to this story.
This story is under development and will be updated.