Productivity grew at a 3.1 percent seasonally adjusted annual rate in the third quarter, in line with economists predictions of 3.3 percent. Prior to the third quarter, productivity had declined for three consecutive quarters, according to the report.
This third quarter increase coincides with a increase in economic growth. From July through September, the economy grew at a 3 percent annual rate, up from about a 1 percent rate in the first half of the year, according to data from the U.S. Department of Commerce.
According to The Wall Street Journal, an increase in productivity helps companies operate more efficiently and increase profits, which, in turn, produces more money they can give to their employees through higher wages.
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