U.S. productivity posted a sharp rebound in the January-March quarter after having fallen in the previous quarter.

The Labor Department reported that the third quarter increase in productivity was below the first estimate a month ago of a 4.9% increase. (AP Photo/Keith Srakocic, File)WASHINGTON – U.S. productivity fell at an annual rate of 4.2% in the fourth quarter, the largest quarterly decline in nearly four decades. The revised figure released by the Labor Department Thursday was slightly smaller than the 4.7% decline estimated a month ago. But it was still the biggest drop since the second quarter of 1981, when productivity fell at a rate of 5.1%. Labor costs rose at a 6% rate in the fourth quarter, slightly lower than the 6.8% first estimated.

WASHINGTON – U.S. productivity increased between July and September, but at a slower pace than in the previous quarter. Productivity advanced 4.9% in the third quarter, following an even larger 10.6% surge in the second quarter, the Labor Department reported Thursday. Labor costs fell by 8.9% after rising by 8.5% in the second quarter. Productivity measures the amount of output per hour of work and is a key component in rising living standards. Even with the third quarter slowdown, productivity is higher than it has over much of the past decade.