U.S. productivity decelerated to a 1.2% annual growth rate in the fourth quarter from a 2.3% rise in the prior three-month period, the Labor Department said Thursday.

Economists surveyed by the Wall Street Journal had projected a 1.4% increase.

For the year, U.S. productivity increased at a 2.3% rate, up from a 1.6% in 2023.

Unit-labor costs, a key measure of wages, rose 3% in the fourth quarter up sharply from a 0.5% rise in the prior quarter.

-Greg Robb

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February 06, 2025 08:34 ET (13:34 GMT)

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