Economic Buzz: US nonfarm business sector labor productivity up 1.4% in second quarter of 2026

US nonfarm business sector labor productivity increased 1.4 percent in the second quarter of 2026, the US Bureau of Labor Statistics reported today, as output increased 1.7 percent and hours worked increased 0.3 percent. From the same quarter a year ago, nonfarm business sector labor productivity increased 2.2 percent in the second quarter of 2026. Unit labor costs in the nonfarm business sector increased 1.3 percent in the second quarter of 2026, reflecting a 2.7-percent increase in hourly compensation and a 1.4-percent increase in productivity. Unit labor costs increased 1.4 percent over the last four quarters.

Manufacturing sector labor productivity increased 1.9 percent in the second quarter of 2026, as output increased 4.6 percent and hours worked increased 2.6 percent. In the durable manufacturing sector, productivity increased 2.7 percent, reflecting a 7.3-percent increase in output and a 4.5-percent increase in hours worked. Nondurable manufacturing sector productivity increased 2.0 percent, as output increased 1.5 percent and hours worked decreased 0.5 percent. Total manufacturing sector productivity increased 0.9 percent from the same quarter a year ago.

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