US Productivity Growth Disappoints In Q1, Unit Labor Costs Surge

For the eighth straight quarter, US productivity grew in Q1, rising 0.4% QoQ (improving on Q4's +0.3%). However, the Q1 gain was less than the +0.6% expectation (and well below the preliminary +0.7% level) as Unit Labor Costs accelerated more than expected.


This is the equal longest streak of productivity gains since 2010 (which corresponded to the V-shaped bounce off the great financial crisis lows).

On the bright side for some, unit labor costs rose more than expected up 2.9% QoQ SAAR, the fastest rate since Q1 2017 and has accelerated in each of the last 4 quarters...

However, real compensation declined for the 3rd straight quarter.


MuffDiver69 Wed, 06/06/2018 - 08:59 Permalink

Q1 is such an anomaly in these reports. Very similiar to the effects of Chinese New Year when you look at Thanksgiving and Christmas time periods on a service based economy..doesn’t help it’s also winter...

Silver Savior Wed, 06/06/2018 - 09:04 Permalink

Just be less productive at work then they will need to hire more people. Being productive is just killing the economy. 

It does the workers no good and with all these scandulous tax cuts for corporations they can surely use the savings to hire more and spread the workload over more people. 

But I know corporations. They will funnel anything they can to their lazy investors.

Expat Wed, 06/06/2018 - 09:31 Permalink

Bullshit stats!  All stats are bullshit! Except the good ones that make Trump look good. Those are real. All the others are fake...even the ones that were real but then turned bad...they become fake and then become bad.  It's Hillary's fault! It's Hillary's fault!

lunaticfringe Wed, 06/06/2018 - 09:53 Permalink

I'm a boomer that dropped out of the rat race- me and my 100 million other pals. There's simply no point in wasting your life- chasing a paycheck where the gov'tment steals half your income and then steals 25% of the energy it takes to get you there or in the state of California- 77 cents a gallon. Then steals 13% of your lunch.


All that for some shitty wage and some pretentious kid boss that woke up on 3rd thinking he hit the triple.


It is classic Atlas shrugs stuff. You can steal workers blind up until they say fuck you. We got a whole country full of people that have had enough. Watch the imminent SS and Medicare implosion keep getting moved up. Gold ain't nearly as interesting as watching this.

BetterRalph Wed, 06/06/2018 - 13:24 Permalink

whips will be cracked from time to time. Even if against the one holding the whip. Tell me everyone doesn't expect things to get worse? You KNOW It's gonna get worse or your willingly blind. Work on strategy to HARDEN your LIFE against these KNOWN problems coming.  For example, quit drinking and smoking and eating high carbs.  Maybe eat an apple carrot and beet each day instead.