Worker Productivity Growth Slows Down

Growth in worker productivity slowed considerably in the first months of the year, but economists say it’s too early to tell if it was just a bump in the road or a warning that hopes of a worry-free “new economy” are misplaced.

Thursday’s report from the Labor Department showing only a slight 0.2 percent gain in productivity in the first quarter of 1998, “was somewhat disconcerting,” said Cliff Waldman, of the National Federation of Independent Business.

From January through March, growth in output for hours worked fell off from a revised 1.4 percent advance in the final three months of 1997. It was the weakest showing since a 0.7 percent decline in the third quarter of 1996.

Economists cautioned that productivity statistics are volatile and it can take years to confirm any trend.