Productivity continued to grow in America in the fourth quarter, even as labor costs fell. The productivity growth last year was approximately 0.6% while the fourth quarter gain was 3.2%. Labor costs fell by about 1.6% in the fourth quarter, but rose by 1% overall in 2013. Generally, boosts in productivity are seen as very good for the economy, because in the past it has meant that employers will be able to pay more to employers without raising prices, a boost to inflation. Over the course of all the years that productivity has been tracked, since 1947, generally it has increased by 2% per year. With consumer spending rising at its fastest rate in 3 years and labor costs declining, employers may be in a position to simply hire more workers instead of stretching existing staff.
See "U.S. productivity rose in fourth quarter as labor costs fell", Martin Crutsinger, St. Louis Post-Dispatch, February 6, 2014