A new report from the Labor Department showed that labor productivity fell by 0.9% in the first quarter of the year, faster than was predicted. The report showed workers were working more, but producing less. Labor costs also rose by 1.3% in the first quarter. While a decline in productivity leads many to assume that companies will hire more workers, that does not seem to be true according to recent jobs reports. Economists say that expect companies begin adding more workers slowly.
See "US worker productivity fell 0.9 pct. annual rate", Martin Crutsinger, Business Week, June 6, 2012