U.S. Labor Productivity Surges 4.9% in Q3 2025

U.S. nonfarm business sector labor productivity increased 4.9% in the third quarter of 2025, led by a 5.4% rise in output and a 0.5% increase in hours worked, according to the Bureau of Labor Statistics. This marks a significant jump from the same quarter a year ago, with productivity up 1.9%. Unit labor costs decreased 1.9% in Q3 2025, reflecting a 2.9% increase in hourly compensation and a 4.9% productivity gain. Manufacturing sector productivity rose 3.7% in Q3 2025, with durable manufacturing up 5.4% and nondurable manufacturing up 1.3%. Nonfinancial corporate sector productivity increased 3.3%, with unit labor costs up 0.3% and unit profits rising 7.8%.