The Labor Department reported today that U.S. worker productivity grew less than previously estimated last quarter, while labor costs soared more than forecast, a sign that inflationary pressures still exist, reported Bloomberg News.

Productivity, a measure of how much an employee produces during an hour of work, rose at an annual rate of 1.6 percent, nearly half of what the government initially estimated a month ago. Meanwhile labor costs increased at a 6.6 percent rate, mainly as a result of one-time bonuses. Analysts had predicted a 3.2 percent rise in labor costs.

For all of 2006, productivity rose 1.6 percent, the slowest since 1997. Labor costs last year rose 3.2 percent, the most in six years. These figures follow last week’s report that economic growth slowed more than estimated in the fourth quarter last year.