Unit labor costs in the US nonfarm business sector increased 1.2% in the second quarter of 2026, slightly below the preliminary estimate of 1.3% and down from a 1.3% increase in the first quarter. Hourly compensation rose 2.6%, accelerating from a 2.1% increase in the previous quarter, while labor productivity grew 1.4%, up from 0.8%. In the total manufacturing sector, unit labor costs fell 0.3%, as hourly compensation increased 2.1% while labor productivity rose 2.4%. This marked the first quarterly decline in manufacturing unit labor costs since the second quarter of 2021. On a year-over-year basis, unit labor costs in the nonfarm business sector increased 1.4%, while manufacturing unit labor costs rose 3.4%. source: U.S. Bureau of Labor Statistics

Unit Labour Costs QoQ in the United States decreased to 1.20 percent in the second quarter of 2026 from 1.30 percent in the first quarter of 2026. Unit Labour Costs QoQ in the United States averaged 2.82 percent from 1947 until 2026, reaching an all time high of 27.30 percent in the third quarter of 1947 and a record low of -14.30 percent in the first quarter of 2009. This page includes a chart with historical data for the United States Unit Labor Costs QoQ. United States Nonfarm Unit Labor Costs QoQ - data, historical chart, forecasts and calendar of releases - was last updated on September of 2026.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-08-06 12:30 PM
Unit Labour Costs QoQ Prel
Q2 1.3% 1.3% 2.1% 2.0%
2026-09-03 12:30 PM
Unit Labour Costs QoQ Final
Q2 1.2% 1.3% 1.3% 1.3%
2026-11-05 01:30 PM
Unit Labour Costs QoQ Prel
Q3 1.2%



Components Last Previous Unit Reference
Nonfarm Productivity 1.40 0.80 percent Jun 2026

Related Last Previous Unit Reference
ADP Employment Change 38.00 46.00 Thousand Aug 2026
Average Hourly Earnings MoM 0.30 0.20 percent Aug 2026
Average Hourly Earnings YoY 3.10 3.20 percent Aug 2026
Average Weekly Hours 34.40 34.30 Hours Aug 2026
Challenger Job Cuts 52881.00 33429.00 Persons Aug 2026
Continuing Jobless Claims 1774.00 1775.00 Thousand Aug 2026
Employed Persons 162746.00 162177.00 Thousand Aug 2026
Employment Cost Index 0.90 0.90 percent Jun 2026
Employment Cost - Benefits 1.00 1.20 percent Jun 2026
Employment Cost - Wages 0.90 0.80 percent Jun 2026
Employment Rate 59.10 58.90 percent Aug 2026
Full Time Employment 134288.00 133553.00 Thousand Aug 2026
Government Payrolls 35.00 -50.00 Thousand Aug 2026
Challenger Hiring Plans 12325.00 16095.00 Persons Aug 2026
Initial Jobless Claims 206.00 207.00 Thousand Sep 2026
Job Layoffs and Discharges 1666.00 1785.00 Thousand Jul 2026
JOLTs Job Openings 7271.00 7182.00 Thousand Jul 2026
JOLTs Job Quits 3056.00 3213.00 Thousand Jul 2026
Job Quits Rate 1.90 2.00 Percent Jul 2026
Job Openings 7738.00 6948.00 Thousand Jul 2026
Jobless Claims 4-week Average 206.00 207.50 Thousand Sep 2026
Participation Rate 61.60 61.40 percent Aug 2026
Labour Costs 123.98 123.62 points Jun 2026
Long Term Unemployment Rate 1.14 1.05 percent Aug 2026
Manufacturing Payrolls 16.00 14.00 Thousand Aug 2026
Minimum Wages 7.25 7.25 USD/Hour Dec 2026
Non Farm Payrolls 162.00 21.00 Thousand Aug 2026
Nonfarm Payrolls Private 127.00 71.00 Thousand Aug 2026
Part Time Employment 28541.00 28764.00 Thousand Aug 2026
Population 342.28 340.97 Million Dec 2025
Productivity 120.02 119.59 points Jun 2026
Retirement Age Men 67.00 66.83 Years Dec 2026
Retirement Age Women 67.00 66.83 Years Dec 2026
U-6 Unemployment Rate 7.70 7.90 percent Aug 2026
Unemployed Persons 7031.00 6916.00 Thousand Aug 2026
Unemployment Rate 4.10 4.10 percent Aug 2026
Unit Labour Costs 1.20 1.30 percent Jun 2026
Wage Growth 3.47 4.17 percent Jul 2026
Wages 32.53 32.42 USD/Hour Aug 2026
Wages in Manufacturing 30.37 30.33 USD/Hour Aug 2026
Youth Unemployment Rate 9.10 8.50 percent Aug 2026


United States Nonfarm Unit Labor Costs QoQ
Labor Costs refers to the relationship between compensation per hour and labor productivity, or real output per hour, and can be used as an indicator of inflationary pressure on producers.
Actual Previous Highest Lowest Dates Unit Frequency
1.20 1.30 27.30 -14.30 1947 - 2026 percent Quarterly
SA

News Stream
US Unit Labor Costs Rise 1.2% in Q2
Unit labor costs in the US nonfarm business sector increased 1.2% in the second quarter of 2026, slightly below the preliminary estimate of 1.3% and down from a 1.3% increase in the first quarter. Hourly compensation rose 2.6%, accelerating from a 2.1% increase in the previous quarter, while labor productivity grew 1.4%, up from 0.8%. In the total manufacturing sector, unit labor costs fell 0.3%, as hourly compensation increased 2.1% while labor productivity rose 2.4%. This marked the first quarterly decline in manufacturing unit labor costs since the second quarter of 2021. On a year-over-year basis, unit labor costs in the nonfarm business sector increased 1.4%, while manufacturing unit labor costs rose 3.4%.
2026-09-03
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%.
2026-08-06
US Labor Costs Rise Less Than Initially Thought
Unit labor costs in the US nonfarm business sector rose by 1.8% in Q1 2026, slowing from a downwardly revised 2.1% increase in Q4 2025 and falling short of the preliminary estimate of 2.3%. The deceleration reflected a 2.1% rise in hourly compensation, down from 3.7% in the previous quarter, while productivity grew by just 0.3%, compared to a 1.6% increase in Q4. In the manufacturing sector, unit labor costs increased by 2.2%, driven by a 5.5% surge in hourly compensation and a 3.2% rise in productivity. On an annual basis, labor costs edged up by 0.5%.
2026-06-04