Nonfarm business sector labor productivity increased at a 1.8 percent annual rate during the first quarter of 2011, the U.S. Bureau of Labor Statistics reported. The gain in productivity reflects increases of 3.2 percent in output and 1.4 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the first quarter of 2010 to the first quarter of 2011, output increased 3.2 percent while hours rose 1.9 percent, yielding an increase in productivity of 1.3 percent.