Labor productivity of the U.S. nonfarm business sectorrose at an annual 3 percent rate from July through September, following a 1.8 percent gain in the previous quarter, the U.S. Labor Department said Monday. The gain in productivity reflected increases of 4.7 percent in output and 1.7 percent in hours worked in the third quarter, the department said in a report. Unit labor costs in nonfarm businesses decreased 1.4 percent in the third quarter, as gain in productivity outpaced hourly compensation. Productivity of the manufacturing sector dropped 0.1 percent, as output advanced 1.1 percent and hours worked rose 1.2 percent. Over the last four quarters, the manufacturing productivity grew 2. 2 percent. Productivity measures the amount of output per hour of work. Increased productivity can slow job creation because it means companies can get more out of their current staff without hiring more workers.