BLS / Productivity and Costs Comment: Another huge labor productivity gain (more output despite less hours worked) and a big drop in labor costs (productivity outstripping hourly compensation). The increase in productivity is nice to see as it will help companies return to profitability, but these outsized numbers cannot last indefinitely. If this productivity trend continues then the unemployment rate my stay elevated for some time. However, companies can only cut costs and increase productivity so much eventually to line revenue growth will need to be seen.