---
source: Bureau of Labor Statistics
url: https://www.bls.gov/news.release/prod2.nr0.htm
document_type: html
date_retrieved: 2026-03-24
period: Q4 2025
parent_publication: Productivity and Costs
indicators_covered: [Unit Labour Costs QoQ, Nonfarm Productivity QoQ]
---

# Productivity and Costs — Fourth Quarter and Annual Averages 2025, Revised

**Transmission of material in this release is embargoed until 8:30 a.m. (ET) Tuesday, March 24, 2026**

Nonfarm business sector labor productivity increased 1.8 percent in the fourth quarter of 2025, the U.S. Bureau of Labor Statistics reported today, as output increased 1.5 percent and hours worked decreased 0.2 percent. (All quarterly percent changes in this release are seasonally adjusted annualized rates.) From fourth-quarter 2024 to fourth-quarter 2025, nonfarm business sector labor productivity increased 2.5 percent. Annual average productivity increased 2.1 percent from 2024 to 2025.

Unit labor costs in the nonfarm business sector increased 4.4 percent in the fourth quarter of 2025, reflecting a 6.3-percent increase in hourly compensation and a 1.8-percent increase in productivity. Unit labor costs increased 2.4 percent over the last four quarters.

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them. Real hourly compensation, which takes into account consumer prices, increased 3.7 percent in the fourth quarter of 2025, and increased 2.1 percent over the last four quarters. The labor share, which is the percentage of output that accrues to workers in the form of compensation, was 54.4 percent in the fourth quarter of 2025.

### Revised measures

The measures released today are based on more recent source data than were available for the preliminary report. Regular updates of source data from BLS, the Bureau of Economic Analysis (BEA) and the Board of Governors of the Federal Reserve System are reflected in data for the third and fourth quarters of 2025.

Nonfarm business sector productivity in the fourth quarter of 2025 increased 1.8 percent rather than the previous estimate of 2.8 percent, reflecting a 1.1-percentage point downward revision to output; hours worked were not revised. Unit labor costs were revised up 1.6 percentage points to an increase of 4.4 percent, reflecting a 1.0-percentage point downward revision to productivity and a 0.6-percentage point upward revision to hourly compensation.

Manufacturing sector productivity was revised down 0.6 percentage point to a decrease of 2.5 percent in the fourth quarter of 2025, reflecting a 0.6-percentage point downward revision to output. Hours worked were not revised.

### Table A1. Labor productivity growth and related measures – revised fourth-quarter 2025
(percent change from previous quarter at annual rate and from same quarter a year ago)

| Sector | Labor productivity | Output | Hours worked | Hourly compensation | Real hourly compensation | Unit labor costs |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Nonfarm business** | | | | | | |
| Previous quarter | 1.8 | 1.5 | -0.2 | 6.3 | 3.7 | 4.4 |
| A year ago | 2.5 | 2.8 | 0.2 | 5.0 | 2.1 | 2.4 |
| **Manufacturing** | | | | | | |
| Previous quarter | -2.5 | -2.8 | -0.3 | 6.3 | 3.7 | 9.1 |
| A year ago | 2.1 | 1.7 | -0.5 | 5.1 | 2.3 | 2.9 |

### Table C1. Labor productivity growth and related measures – annual average changes: 2021-2025

| Sector | Year | Labor productivity | Output | Hours worked | Hourly compensation | Real hourly compensation | Unit labor costs |
| :--- | :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Nonfarm business** | 2025 | 2.1 | 2.5 | 0.4 | 4.5 | 1.8 | 2.3 |
| | 2024 | 3.0 | 2.9 | 0.0 | 5.5 | 2.5 | 2.4 |
| | 2023 | 2.0 | 3.1 | 1.1 | 4.0 | -0.1 | 2.0 |
| **Manufacturing** | 2025 | 1.9 | 1.0 | -0.9 | 4.4 | 1.7 | 2.4 |
| | 2024 | 0.3 | -0.9 | -1.2 | 5.0 | 2.0 | 4.7 |