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%. source: U.S. Bureau of Labor Statistics

Unit Labour Costs QoQ in the United States decreased to 1.80 percent in the first quarter of 2026 from 2.10 percent in the fourth quarter of 2025. 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 June of 2026.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-05-07 12:30 PM
Unit Labour Costs QoQ Prel
Q1 2.3% 4.6% 2.6% 3.0%
2026-06-04 12:30 PM
Unit Labour Costs QoQ Final
Q1 1.8% 2.1% 2.5% 2.3%
2026-08-06 12:30 PM
Unit Labour Costs QoQ Prel
Q2 1.8%



Components Last Previous Unit Reference
Nonfarm Productivity 0.30 1.60 percent Mar 2026

Related Last Previous Unit Reference
ADP Employment Change 122.00 105.00 Thousand May 2026
Average Hourly Earnings MoM 0.30 0.20 percent May 2026
Average Hourly Earnings YoY 3.40 3.60 percent May 2026
Average Weekly Hours 34.30 34.30 Hours May 2026
Challenger Job Cuts 97006.00 83387.00 Persons May 2026
Continuing Jobless Claims 1777.00 1785.00 Thousand May 2026
Employed Persons 162771.00 162622.00 Thousand May 2026
Employment Cost Index 0.90 0.70 percent Mar 2026
Employment Cost - Benefits 1.20 0.80 percent Mar 2026
Employment Cost - Wages 0.80 0.70 percent Mar 2026
Employment Rate 59.20 59.10 percent May 2026
Full Time Employment 134173.00 134252.00 Thousand May 2026
Government Payrolls 52.00 2.00 Thousand May 2026
Challenger Hiring Plans 19536.00 10049.00 Persons May 2026
Initial Jobless Claims 225.00 212.00 Thousand May 2026
Job Layoffs and Discharges 1692.00 1884.00 Thousand Apr 2026
JOLTs Job Openings 7618.00 6887.00 Thousand Apr 2026
JOLTs Job Quits 2977.00 3160.00 Thousand Apr 2026
Job Quits Rate 1.90 2.00 Percent Apr 2026
Job Openings 8176.00 6677.00 Thousand Apr 2026
Jobless Claims 4-week Average 214.75 208.25 Thousand May 2026
Participation Rate 61.80 61.80 percent May 2026
Labour Costs 123.78 123.22 points Mar 2026
Long Term Unemployment Rate 1.17 1.08 percent May 2026
Manufacturing Payrolls 7.00 0.00 Thousand May 2026
Minimum Wages 7.25 7.25 USD/Hour Dec 2026
Non Farm Payrolls 172.00 179.00 Thousand May 2026
Nonfarm Payrolls Private 120.00 177.00 Thousand May 2026
Part Time Employment 28679.00 28413.00 Thousand May 2026
Population 342.28 340.97 Million Dec 2025
Productivity 119.40 119.35 points Mar 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 8.10 8.20 percent May 2026
Unemployed Persons 7307.00 7373.00 Thousand May 2026
Unemployment Rate 4.30 4.30 percent May 2026
Unit Labour Costs 1.80 2.10 percent Mar 2026
Wage Growth 3.53 3.28 percent Apr 2026
Wages 32.31 32.23 USD/Hour May 2026
Wages in Manufacturing 30.19 30.10 USD/Hour May 2026
Youth Unemployment Rate 9.40 9.50 percent May 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
1.80 2.10 27.30 -14.30 1947 - 2026 percent Quarterly
SA

News Stream
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
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%.
2026-05-07
US Labor Costs Rise More than Thought
Unit labor costs in the US nonfarm business sector rose by 4.4% in Q4 2025, more than earlier estimates of 2.8% and after a 1% increase in Q3. It reflects a 6.3% increase in hourly compensation and a 1.8% increase in productivity. In the manufacturing sector, unit labor costs rose 9.1%, the most since the third quarter of 2022, reflecting a 6.3% increase in hourly compensation and a 2.5 decrease in productivity. On an annual basis, nonfarm unit labor costs rose 2.4%, while manufacturing unit labor costs advanced 2.9%. For 2025, unit labour costs rose 2.3% in the nonfarm business sector and 2.4% in the manufacturing sector.
2026-03-24