WHAT: Labor Department Productivity and Costs, Q1 final WHEN: Wednesday 0830 EDT (1230 GMT) FORECASTS (pct) Reuters IFR Previous Productivity -0.7 -0.9 -0.5 Labor Costs +2.2 +2.4 +2.0 IFR COMMENTARY: "With the downward revision to nonfarm business output seen in the first Q1 GDP revision, we look for Q1 productivity to be revised down from an annualized rate of -0.5% to about -0.9%, with unit labor costs in turn revised up from 2.0% to 2.4%. While flattening out of productivity gains and unit labor cost declines was always likely as employers pull more marginal workers back into the workforce, having that occur together with declining profits means hiring is likely to face constraint unless demand rises significantly. Unfortunately, with labor market slack keeping wage growth low and hiring appearing to slow, demand is unlikely to see any sudden spikes." -----------------
-- by Theodore Littleton of IFR Markets, a unit of Thomson Reuters.