The Bureau of Labor Statistics released a report today on productivity and costs for the second quarter of 2009. Productivity increased 6.6% over the first quarter: This was the largest productivity increase since the third quarter of 2003, and reflects declines of 1.5 percent in output and 7.6 percent in hours worked. (All quarterly percent changes in this release are seasonally adjusted annual rates.) From the second quarter of 2008 to the second quarter of 2009, output fell 5.5 percent while hours fell 7.2 percent, yielding an increase in productivity of 1.9 percent (chart 1, tables A and 2). Nonfarm business productivity increased at an annual rate of 2.5 percent from 2000 through 2008. As productivity rose, labor costs declined 5.9% in the quarter. Read the release here .