Productivity Rises 2.2% in Second Quarter

Second-quarter U.S. worker productivity rose 2.2%, the Labor Department said Friday.

The level followed a revised 2.6% first-quarter’s gain. Productivity is a measure of how much an employee produces for every hour of work.

Economists had forecast a rise of 2.5%, Bloomberg reported.

The increase came as employers cut payrolls and dealt with higher raw materials prices, Bloomberg said.

When worker efficiency improves at a slower pace and labor becomes more expensive, companies may raise prices in order to guard their profits, contributing to more rapid inflation.