US Labor Costs Rise More than Expected

EthereumCraftsman · 2026-03-05T13:40:18+00:00

In Q4 2025, US nonfarm unit labor costs increased by 2.8%, exceeding expectations, with significant hourly compensation and productivity gains. Manufacturing saw an 8.3% rise in costs, marking the highest since Q3 2022.

EthereumCraftsman

2026-03-05 13:40:18

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Unit labor costs in the US nonfarm business sector rose by 2.8% in Q4 2025, more than market expectations of 2% and after a 1.8% fall in Q3, preliminary estimates showed. It reflects a 5.7% increase in hourly compensation and a 2.8% increase in productivity. In the manufacturing sector, unit labor costs rose 8.3%, the most since the third quarter of 2022, reflecting a 6.2% increase in hourly compensation and a 1.9 decrease in productivity. On an annual basis, nonfarm unit labor costs rose 1.3%, while manufacturing unit labor costs advanced 2.6%. For 2025, unit labour costs rose 1.9% in the nonfarm business sector and 2.3% in the manufacturing sector.

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