This is definitely a surprise.
Unit labour Costs fell a stunning 4.3% in Q1, according to the BLS:
Unit labour costs in nonfarm businesses fell 4.3 per cent in the first quarter of 2013, the combined effect of a 3.8 per cent decrease in hourly compensation and the 0.5 per cent increase in productivity. The decline in hourly compensation is the largest in the series, which begins in 1947. However, over the last four quarters hourly compensation increased 2.0 per cent and unit labour costs rose 1.1 per cent.
This compares unfavorably to expectations of a 0.5% increase.