Productivity in the U.S. saw its sharpest annual fall during the second quarter of 2022.
According to the U.S. Labor Department’s quarterly report, nonfarm productivity fell at a 2.5% pace from the year prior. In the second quarter, it fell at a 4.6% rate.
A poll of economists forecasted that productivity would fall by 4.7% between April and June.
The country’s workforce is undergoing a major evolution, with more people working from home than ever before. As a result, accurately measuring productivity growth has become difficult.
The report showed that the number of hours worked grew to a 2.6% rate following a 12.7% increase during the first quarter.
Labor costs have also gone up, with unit labor costs increasing 9.5% from the same time a year ago. Hourly wages also grew 5.7% during the second quarter, a dip from the 6.7% rate seen during 2021’s second quarter.
