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U.S. Productivity Falls at Faster Pace, Labor Costs Rise

Associated Press (03/05/15)

Worker productivity in the fourth quarter of 2014 dropped at an annual rate of 2.2%, less than the 1.8% decline estimated one month ago, according to the U.S. Department of Labor. Labor costs increased at a rate of 4.1%, up from estimates of 2.7%. This period of worsening productivity and increasing labor costs is expected to be temporary, experts say, and they do not believe that inflation will become a problem.