US Labor Costs Rise Less than Anticipated

2026-08-06 12:37 By Luisa Carvalho 1 min. read

Unit labor costs in the US nonfarm business sector rose by 1.3% in Q2 2026, matching the revised Q1 pace, but missing market forecasts of 2.1%, preliminary data showed.

This reflected a 2.7% increase in hourly compensation, up from 2.1% in Q1, alongside a 1.4% rise in productivity, up from 0.8% in the prior quarter.

In the manufacturing sector, unit labor costs were unchanged, as a 1.9% increase in hourly compensation was offset by a 1.9% increase in productivity.

On an annual basis, nonfarm labor costs rose by 1.4%, while manufacturing unit labor costs advanced 3.5%.



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US Labor Costs Rise Less than Anticipated
Unit labor costs in the US nonfarm business sector rose by 1.3% in Q2 2026, matching the revised Q1 pace, but missing market forecasts of 2.1%, preliminary data showed. This reflected a 2.7% increase in hourly compensation, up from 2.1% in Q1, alongside a 1.4% rise in productivity, up from 0.8% in the prior quarter. In the manufacturing sector, unit labor costs were unchanged, as a 1.9% increase in hourly compensation was offset by a 1.9% increase in productivity. On an annual basis, nonfarm labor costs rose by 1.4%, while manufacturing unit labor costs advanced 3.5%.
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2026-06-04
US Labor Costs Rise Less than Expected
Unit labor costs in the US nonfarm business sector increased by 2.3% in Q1 2026, less than market expectations of 2.6% and after an upwardly revised 4.6% rise in Q4, preliminary estimates showed. It reflects a 31% increase in hourly compensation and a 0.8% increase in productivity. In the manufacturing sector, unit labor costs rose 2.4%, reflecting a 6.1% increase in hourly compensation and a 3.6% increase in productivity. On an annual basis, nonfarm unit labor costs rose 1.2%, while manufacturing unit labor costs advanced 3.7%.
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