US Productivity Posts Strongest Gain Since 2023

Nonfarm business sector labor productivity in the US climbed by 4.9% in Q3 2025, following a 4.1% rise in the previous period, in line with the preliminary estimate. This marked the strongest advance since Q3 2023, as output surged 5.4% after a 5.2% rise in Q2, while hours worked went up 0.5%, following a 1% increase previously. Manufacturing sector labor productivity increased 3.7%, revised up from the preliminary estimate of 3.3%, as output increased by 3% while hours worked decreased by 0.7%. From the same quarter a year ago, nonfarm business sector labor productivity increased 1.9%, matching an earlier estimate. Total manufacturing sector productivity increased 2.4% from the same quarter a year ago, marking the largest gain since Q2 2021.

Nonfarm business sector labor productivity in the US surged by 4.9% in Q3 2025, accelerating from an upwardly revised 4.1% rise in Q2 and surpassing market forecasts of 3%, preliminary estimates showed. It marked the strongest advance since Q3 2023, as output climbed 5.4% after a 5.2% rise in Q2, while hours worked went up 0.5%, following a 1% increase previously. Manufacturing sector labor productivity increased 3.3%, as output increased by 2.6% while hours worked decreased by 0.7%. From the same quarter a year ago, nonfarm business sector labor productivity increased 1.9%, down from an upwardly revised 3.3% rise in the previous period.

Nonfarm business sector labor productivity in the US rose 3.3% in Q2 2025, rebounding from a 1.8% decline in the previous quarter and beating the preliminary estimate of 2.4%. It marked the strongest advance since Q4 2023. Output increased 4.4% after contracting 0.6% in Q1, while hours worked rose 1.1%, slightly below the 1.2% gain in the prior period. In the manufacturing sector, labor productivity advanced 2.5% in Q2, as output grew 2.4% while hours worked slipped 0.1%. On a year-over-year basis, productivity grew 1.5%, following an increase of 1.2% in the previous quarter.