Nonfarm business sector labor productivity increased 1.8% in the fourth quarter of 2025, the U.S. Bureau of Labor Statistics reported today, as output increased 1.5% and hours worked decreased 0.2%. (All quarterly% changes in this release are seasonally adjusted annualized rates.)
From fourth-quarter 2024 to fourth-quarter 2025, nonfarm business sector labor productivity increased 2.5%. (See table A1.) Annual average productivity increased 2.1% from 2024 to 2025.
Unit labor costs in the nonfarm business sector increased 4.4% in the fourth quarter of 2025, reflecting a 6.3-percent increase in hourly compensation and a 1.8-percent increase in productivity. Unit labor costs increased 2.4% over the last four quarters.
