The productivity in the United States has decreased for the first time since 2022 due to a decline in output.

Labor productivity in the United States fell for the first time in nearly three years in the first quarter, due to a decline in economic output, ending a streak of consecutive efficiency growth that had helped cushion the impact of rising labor costs on inflation. According to data released by the U.S. Bureau of Labor Statistics on Thursday, productivity fell at an annual rate of 0.8%, revised down from a 1.7% increase in the fourth quarter of last year. Unit labor costs surged by 5.7% in the first quarter, the largest increase in a year.