WASHINGTON – U.S. workers increased their productivity in the April-June quarter after companies scaled back hiring and got more out of their existing work forces. The gain was modest and suggests some companies may have to hire more workers if demand picks up.

The Labor Department said Wednesday that productivity rose at an annual rate of 1.6 percent in the second quarter. It fell 0.5 percent in the first quarter, a smaller decline than first estimated.

Productivity is the amount of output per hour worked. Rising productivity can slow job creation because it means companies are getting more from their current staff and don't need to add workers.