According to a US Department of Labor report released today, US non-farm productivity grew only 3.6% in the first quarter of 2010. This number is the smallest increase in over a year, and a significant change from the final quarter of 2009, during which productivity grew by 6.3%. 2009 was in fact the largest gain year since 1962. Seemingly paradoxically, the slowing production rates might actually be a good sign for the economy, which has been rushing through an unsustainable production model in the last year. Slowing growth means many manufacturers and companies will have to hire more employees to keep up with growing demand in the coming months. It may even be happening already - the Labor Department also reported that initial jobless claims fell by 7,000 last week.
See "US productivity growth slows in first quarter", Alan Rappeport, Financial Times, May 5, 2010