2026 First Quarter (Revised) Productivity and Costs — 2026-06-04

Nonfarm business sector labor productivity increased 0.3 percent in the first quarter of 2026, the U.S. Bureau of Labor Statistics reported today, as output increased 1.0 percent and hours worked increased 0.7 percent. (All quarterly percent changes in this release are seasonally adjusted annualized rates.) From the same quarter a year ago, nonfarm business sector labor productivity increased 2.8 percent in the first quarter of 2026, reflecting an increase in output of 3.2 percent and increase in hours worked of 0.4 percent. (See tables A1 and 2.) Unit labor costs in the nonfarm business sector increased 1.8 percent in the first quarter of 2026, reflecting a 2.1-percent increase in hourly compensation and a 0.3-percent increase in productivity. Unit labor costs increased 0.5 percent over the last four quarters. (See tables A1 and 2.) BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity.