Article: PRODUCTIVITY UP, BUT LABOR MARKET SLUGGISH.(BUSINESS)(MARKET MEMO)(Column)

WASHINGTON -- U.S. PRODUCTIVITY IMPROVED IN THE FIRST THREE MONTHS OF 2003, INCREASING AT AN ANNUAL RATE OF 1.6 PERCENT AS COMPANIES PRODUCED MORE WHILE THEY KEPT WORK FORCES LEAN.

The gain in productivity -- the amount of output per hour of work -- posted in the January to March quarter was more than twice the size of the 0.7 percent growth rate registered in the previous quarter, the Labor Department reported today.

However, productivity in the first quarter wasn't as strong as the 2 percent growth rate economists were forecasting.

Separately, new claims for unemployment benefits dropped last week by a seasonally adjusted 13,000 to 448,000, ...

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