MSNBC reported that worker productivity was higher than it was expected to be over the first three months of the year. The Labor Department earlier had estimated worker productivity for the first quarter of 2008 would rise at an annual rate of 2.2 percent, but now reports that it actually rose 2.6 percent. This 2.6 annual increase in the first quarter is a great leap from where productivity growth was during the last four months of 2007, when productivity increased only 1.8 percent.

Meanwhile, labor costs are rising for employers, but at a much lower rate than last year. Labor costs are rising at an annual rate of 2.2 percent, which is down from the 4.7 percent surge that was experienced during the fourth quarter of 2007.