Nonfarm business sector labor productivity increased 2.8% in the fourth quarter of 2025, the U.S. Bureau of Labor Statistics reported, as output increased 2.6% and hours worked decreased 0.2%.
(All quarterly percentage changes in this release are seasonally adjusted annualized rates.) From fourth quarter 2024 to fourth quarter 2025, nonfarm business sector labor productivity increased 2.8 percent. (See table A1.) Annual average productivity increased 2.2% from 2024 to 2025.
Unit labor costs in the nonfarm business sector increased 2.8% in the fourth quarter of 2025, reflecting a 5.7% increase in hourly compensation and a 2.8% increase in productivity. Unit labor costs increased 1.3% over the last four quarters. BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity.
