US worker productivity may rise on back of job cuts

US worker productivity probably rose in the first quarter as the worst recession in at least half a century prompted companies to squeeze more out of remaining staff, economists said before a report yesterday.

Productivity, a measure of employee output per hour, rose at a 0.6 percent annual rate after dropping at a 0.4 percent pace at the end of 2008, according to the median forecast of 61 economists surveyed by Bloomberg News.

CSX Corp and Texas Instruments Inc are among companies trying to survive the slump by paring payrolls and hours to cut labor costs and shore up profits. An improvement in earnings is a necessary step in getting the economy to expand again later this year.