China Post reported that US productivity dropped this spring for the first time in more than a year, a sign that companies may need to hire more workers in the near future.

The Labor Department said that worker productivity declined at an annual rate of 0.9% in the second quarter after posting large gains throughout 2009. Unit labor costs edged up 0.2% in the second quarter, the first increase since the spring of 2009.

Productivity rose by large amounts during the recession. Companies slashed their payrolls and pushed unemployment up to the highest levels in more than two decades. Economists said a slowing in productivity would be welcome development if it translates into more hiring.

(Sourced from www.chinapost.com.tw)