US Productivity and Unit Labor Costs
Quarterly labor productivity and costs for six sectors of the US economy - nonfarm business, business, nonfinancial corporations, manufacturing and its durable and nondurable halves - as seasonally adjusted percent changes from the previous quarter at an annual rate, the form in which BLS headlines them.
| Indicator | Q2-2026 | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | Q4-2023 | Q3-2023 | Q2-2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nonfarm business sector6 | ||||||||||||||
| Labor productivity (output per hour) | 1.4 | 0.8 | 1.6 | 5.2 | 4.2 | -0.9 | 1.4 | 3.7 | 3.7 | 0.2 | 3.9 | 5.1 | 4.1 | |
| Real output | 1.7 | 1.5 | 1.3 | 5.4 | 5.2 | -0.9 | 1.7 | 3.9 | 4 | 0.2 | 3.7 | 5.5 | 2.9 | |
| Hours worked | 0.3 | 0.7 | -0.2 | 0.2 | 1 | 0 | 0.3 | 0.2 | 0.3 | 0 | -0.2 | 0.4 | -1.1 | |
| Hourly compensation | 2.6 | 2.1 | 3.7 | 6.2 | 1.2 | 6.3 | 4.4 | 4.8 | 4.8 | 5.8 | 5.2 | 6.3 | 6.5 | |
| Real hourly compensation | -3.3 | -1.4 | 1.2 | 3 | -0.5 | 2.5 | 1.1 | 3.5 | 2 | 2 | 2.3 | 2.7 | 3.6 | |
| Unit labor costs | 1.2 | 1.3 | 2.1 | 1 | -2.9 | 7.3 | 2.9 | 1.1 | 1.1 | 5.5 | 1.2 | 1.2 | 2.4 | |
| Business sector6 | ||||||||||||||
| Labor productivity (output per hour) | 1.2 | 0.6 | 1.6 | 5.2 | 4.5 | -1 | 1.9 | 3.2 | 3.8 | 0.4 | 4 | 5 | 3.5 | |
| Real output | 1.6 | 1.5 | 1.5 | 5.5 | 5.1 | -1.1 | 1.7 | 3.8 | 4.2 | 0.4 | 3.6 | 5.3 | 2.7 | |
| Hours worked | 0.4 | 0.9 | -0.1 | 0.3 | 0.6 | -0.1 | -0.2 | 0.5 | 0.3 | 0 | -0.3 | 0.3 | -0.8 | |
| Hourly compensation | 2.4 | 2 | 3.7 | 6.1 | 1.5 | 6.4 | 4.9 | 4.4 | 4.7 | 5.7 | 5.3 | 6.5 | 6.1 | |
| Real hourly compensation | -3.4 | -1.5 | 1.1 | 2.9 | -0.2 | 2.7 | 1.7 | 3.1 | 1.9 | 1.9 | 2.4 | 2.9 | 3.1 | |
| Unit labor costs | 1.2 | 1.3 | 2.1 | 0.8 | -2.9 | 7.5 | 2.9 | 1.2 | 0.9 | 5.2 | 1.3 | 1.4 | 2.5 | |
| Nonfinancial corporations7 | ||||||||||||||
| Labor productivity (output per hour) | 2.2 | 1.4 | 4.2 | 4.5 | 4.9 | 0.4 | 5.4 | 2 | -0.8 | 3.1 | 5.1 | 2.9 | 3.4 | |
| Real output | 3.9 | 2.8 | 3.5 | 5.2 | 5.8 | -0.3 | 5.3 | 1.8 | 0 | 2.9 | 4.9 | 2.9 | 2.6 | |
| Hours worked | 1.7 | 1.4 | -0.7 | 0.6 | 0.9 | -0.7 | 0 | -0.3 | 0.7 | -0.2 | -0.2 | 0.1 | -0.7 | |
| Hourly compensation | 1.9 | 2.1 | 4.1 | 5.8 | 2.1 | 6.7 | 6.6 | 1.6 | 1.4 | 12.1 | 3.7 | 4.5 | 6 | |
| Real hourly compensation | -3.9 | -1.4 | 1.6 | 2.6 | 0.4 | 2.9 | 3.3 | 0.3 | -1.3 | 8.1 | 0.7 | 1 | 3 | |
| Unit labor costs | -0.3 | 0.7 | -0.1 | 1.2 | -2.7 | 6.3 | 1.2 | -0.5 | 2.2 | 8.7 | -1.3 | 1.6 | 2.5 | |
| Unit profits | 43 | 18.6 | 6.7 | 6.6 | -3.6 | -5.1 | 1.2 | -1 | 15.1 | -22 | 14.8 | 12.6 | 3.7 | |
| Manufacturing6 | ||||||||||||||
| Labor productivity (output per hour) | 2.4 | 2.2 | -3.6 | 3.5 | 3.1 | 4.5 | 0 | -0.5 | 0.9 | -1.3 | 2.5 | -1 | 4.5 | |
| Real sectoral output | 5.4 | 2.1 | -3.8 | 2.8 | 2.9 | 3.9 | -2.1 | -2.3 | 1.1 | -2 | -0.8 | -0.6 | 0.7 | |
| Hours worked | 2.9 | 0 | -0.3 | -0.6 | -0.3 | -0.6 | -2.1 | -1.8 | 0.2 | -0.7 | -3.2 | 0.5 | -3.6 | |
| Hourly compensation | 2.1 | 5.5 | 5 | 5.4 | 4.3 | 4.5 | 2.5 | 5 | 5.1 | 3 | 6.9 | 5.9 | 9.2 | |
| Real hourly compensation | -3.7 | 1.9 | 2.4 | 2.2 | 2.6 | 0.8 | -0.7 | 3.6 | 2.3 | -0.6 | 3.9 | 2.4 | 6.1 | |
| Unit labor costs | -0.3 | 3.3 | 8.9 | 1.8 | 1.1 | 0 | 2.5 | 5.5 | 4.1 | 4.4 | 4.3 | 7 | 4.4 | |
| Durable manufacturing6 | ||||||||||||||
| Labor productivity (output per hour) | 3.6 | 4.9 | -4 | 5.8 | 4.3 | 7.7 | -2 | -0.4 | -0.1 | -0.2 | 0.2 | -4.4 | 6.1 | |
| Real sectoral output | 8.9 | 5.2 | -3.3 | 3.8 | 4.7 | 7.5 | -4.6 | -4.5 | 0.3 | -2.4 | -3.4 | -1.5 | 1.5 | |
| Hours worked | 5.1 | 0.3 | 0.7 | -1.9 | 0.4 | -0.1 | -2.6 | -4.1 | 0.4 | -2.2 | -3.7 | 3 | -4.3 | |
| Hourly compensation | 1.4 | 7.6 | 6.5 | 7 | 4.6 | 5.5 | 3.1 | 6.6 | 3.2 | 4.1 | 8.5 | 4.2 | 11.5 | |
| Real hourly compensation | -4.4 | 3.9 | 3.9 | 3.8 | 2.9 | 1.7 | -0.1 | 5.3 | 0.4 | 0.4 | 5.4 | 0.7 | 8.4 | |
| Unit labor costs | -2.2 | 2.6 | 10.9 | 1.2 | 0.3 | -2 | 5.3 | 7.1 | 3.3 | 4.3 | 8.3 | 9 | 5.2 | |
| Nondurable manufacturing6 | ||||||||||||||
| Labor productivity (output per hour) | 2.1 | -0.6 | -2.6 | 0.3 | 2.3 | 1.5 | 1.9 | -2 | 2.2 | -3.4 | 4.6 | 4.2 | 2.4 | |
| Real sectoral output | 1.4 | -1.2 | -4.5 | 1.8 | 0.9 | 0.2 | 0.5 | 0.1 | 2 | -1.7 | 2.1 | 0.5 | -0.1 | |
| Hours worked | -0.6 | -0.5 | -1.9 | 1.5 | -1.4 | -1.3 | -1.3 | 2.1 | -0.1 | 1.8 | -2.4 | -3.6 | -2.5 | |
| Hourly compensation | 2.9 | 1.5 | 1.8 | 2.6 | 3.6 | 2.6 | 1.4 | 2.4 | 8.9 | 1.3 | 4 | 8.6 | 4.9 | |
| Real hourly compensation | -3 | -2 | -0.7 | -0.5 | 1.9 | -1 | -1.7 | 1.1 | 6 | -2.3 | 1 | 5 | 2 | |
| Unit labor costs | 0.8 | 2.1 | 4.5 | 2.3 | 1.2 | 1.2 | -0.4 | 4.5 | 6.6 | 4.9 | -0.6 | 4.2 | 2.5 |
Latest reading
Labor productivity (output per hour) stood at 1.4 % change, annualized in Q2 2026. That is +0.6 pp from Q1 2026 and −2.8 pp from a year earlier. The series on this page is quarterly and runs from Q1 1995 to Q2 2026. Source: U.S. Bureau of Labor Statistics (BLS).
- Latest
- 1.4 % change, annualized
- Q2 2026
- vs previous period
- +0.6 pp
- Q1 2026
- vs a year earlier
- −2.8 pp
About this data
Quarterly labor productivity and costs for six sectors of the US economy - nonfarm business, business, nonfinancial corporations, manufacturing and its durable and nondurable halves - as seasonally adjusted percent changes from the previous quarter at an annual rate, the form in which BLS headlines them. For each sector: output per hour, real output, hours worked, hourly compensation in nominal and real terms, and unit labor costs, the wage-side gauge of inflation pressure (compensation growth minus productivity growth). Nonfinancial corporations add unit profits. Source: U.S. Bureau of Labor Statistics (Productivity and Costs).
Frequently asked questions
- What do US labour productivity and unit labour costs measure?
- Labour productivity is output per hour worked. Unit labour costs are hourly compensation divided by productivity — the labour cost of producing one unit of output.
- Who publishes the data and how far back does it go?
- The US Bureau of Labor Statistics publishes it quarterly, with the series on this page covering the nonfarm business, business and manufacturing sectors from the first quarter of 1995.
- Why do unit labour costs matter for inflation?
- Because they show whether pay is rising faster than output per hour. Wage growth matched by productivity growth leaves unit costs flat and adds no inflation pressure.
- Which sectors are covered?
- Nonfarm business, total business, and manufacturing split into durable and nondurable goods. Government, nonprofits and owner-occupied housing are excluded from the business sector measures.
