Updated: 06-Aug-26 09:26 ET
Highlights
- Nonfarm business sector labor productivity increased 1.4% in the second quarter (Briefing.com consensus: 0.8%) following an upwardly revised 0.8% increase (from 0.3%) in the first quarter.
- Unit labor costs were up 1.3% (Briefing.com consensus: 1.7%) following a downwardly revised 1.3% increase (from 1.8%) in the first quarter.
- The increase in productivity was the result of output increasing 1.7% and hours worked increasing 0.3%. From the same quarter a year ago, nonfarm business sector labor productivity increased 2.2%.
- The increase in unit labor costs stemmed from a 2.7% increase in hourly compensation and a 1.4% increase in productivity.
- Manufacturing sector labor productivity increased 1.9%, as output increased 4.6% and hours worked increased 2.6%. Unit labor costs in the total manufacturing sector were unchanged, as a 1.9% increase in hourly compensation was offset by a 1.9% increase in productivity.
- The key takeaway from the report is that rising productivity helped keep labor costs in check.
| Category | Q2 | Q1 | Q4 | Q3 | Q2 |
| Nonfarm Business Sector | |||||
| Productivity Q/Q | 1.4% | 0.8% | 1.6% | 5.2% | 4.2% |
| Unit Labor Costs Q/Q | 1.3% | 1.3% | 2.1% | 1.0% | -2.9% |
| Productivity Y/Y | 2.2% | 2.9% | 2.5% | 2.5% | 2.1% |
| Unit Labor Costs Y/Y | 1.4% | 0.4% | 1.8% | 2.0% | 2.0% |
