Worker Productivity Steady, Costs Rise

Productivity in the fourth quarter is revised slightly to no change from an initial decline of 0.1 percent though the revision for unit labor costs is more tangible, now at plus 2.5 percent vs 2.0 percent initially. This reflects an upward revision to compensation now at plus 2.4 percent with hours worked, up 3.3 percent, and output, up 3.2 percent, both unchanged. A rising cost for labor relative to output is a negative for profit margins as companies, given lack of traction for selling prices, have to absorb the imbalance.