Productivity Shows A Rebound, Wage Pressures Are Reduced - Cleveland 19 News Cleveland, OH

Productivity Shows A Rebound, Wage Pressures Are Reduced

WASHINGTON (AP) - It's some news that should be welcomed at the Federal Reserve, where policy-makers are expected to keep interest rates unchanged again today.

The government reports that the productivity of American workers rebounded in the spring, while wage pressures were easing.

According to the Labor Department, worker efficiency rose at an annual rate of 1.8 percent in the April-to-June quarter. That's more than twice the pace of the first three months of the year.

At the same time, unit labor costs rose at a rate of 2.1 percent. That makes it the second consecutive quarter that wage pressures have lessened.

If wages rise too quickly, they can spur unwanted inflation.

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