WASHINGTON (AP) — U.S. productivity posted a sharp rebound in the January-March quarter after having fallen in the previous quarter. Labor costs declined slightly. The Labor Department reported Thursday that productivity increased at an annual rate of 5.4% in the first quarter, recovering from a 3.8% rate of decline in the fourth quarter of last year. Labor costs fell at a 0.3% rate in the first quarter following a 5.6% jump in the fourth quarter. It was the biggest quarterly rise in productivity since an 11.2% surge in the second quarter of last year, a gain that reflected the fact that output was not falling as fast as the labor market was shrinking as millions of people were being laid off after the pandemic hit.
Productivity rebounds at solid 5.4% rate in first quarter
