U.S. worker productivity growth slowed significantly in the first quarter, leading to a surge in labor costs, although the productivity trend remained solid. According to the Labor Department's Bureau of Labor Statistics, nonfarm productivity increased at a modest 0.3% annualized rate, down from 3.5% in the previous quarter. Economists had forecasted a higher rate of 0.8%. Productivity has risen by 2.9% compared to a year ago.
