Manufacturing Sector Productivity Up, Labor Costs Down in Q1 2011

U.S. Bureau of Labor Statistics released Q1 productivity and cost numbers today.  U.S. labor productivity was up 1.6% driven by a 3.1% increase in output and a 1.4% increase in hours worked.  Manufacturing sector productivity was up 6.3% driven by increases in output and hours worked of 9.7% and 3.3%, respectively.  Unit labor costs in manufacturing declined 3.5% in Q1.  Is that related to the soaring unemployment numbers released today as manufacturing runs much leaner in these tough economic times?