Unit labor costs in the US nonfarm business sector increased 1.0 percent in the second quarter of 2025, lower than preliminary estimates of 1.6 percent. It reflects a 4.3 percent increase in hourly compensation and a 3.3 percent increase in productivity. Unit labor costs increased 2.5 percent over the last four quarters. Meanwhile, unit labor costs in the total manufacturing sector increased 2.0 percent, reflecting a 4.5 percent increase in hourly compensation and a 2.5 percent increase in productivity. Manufacturing unit labor costs increased 2.6 percent from the same quarter a year ago. source: U.S. Bureau of Labor Statistics

Unit Labour Costs QoQ in the United States decreased to 1 percent in the second quarter of 2025 from 6.90 percent in the first quarter of 2025. Unit Labour Costs QoQ in the United States averaged 2.85 percent from 1947 until 2025, 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 2025.



Calendar GMT Reference Actual Previous Consensus TEForecast
2025-08-07 12:30 PM
Unit Labour Costs QoQ Prel
Q2 1.6% 6.9% 1.5% 2.0%
2025-09-04 12:30 PM
Unit Labour Costs QoQ Final
Q2 1% 6.9% 1.2% 1.6%
2025-11-06 01:30 PM
Unit Labour Costs QoQ Prel
Q3 1%

Components Last Previous Unit Reference
Nonfarm Productivity 3.30 -1.80 percent Jun 2025

Related Last Previous Unit Reference
ADP Employment Change 54.00 106.00 Thousand Aug 2025
Average Hourly Earnings MoM 0.30 0.30 percent Aug 2025
Average Hourly Earnings YoY 3.70 3.90 percent Aug 2025
Average Weekly Hours 34.20 34.20 Hours Aug 2025
Challenger Job Cuts 85979.00 62075.00 Persons Aug 2025
Continuing Jobless Claims 1940.00 1944.00 Thousand Aug 2025
Employed Persons 163394.00 163106.00 Thousand Aug 2025
Employment Cost Index 0.90 0.90 percent Jun 2025
Employment Cost - Benefits 0.70 1.20 percent Jun 2025
Employment Cost - Wages 1.00 0.80 percent Jun 2025
Employment Rate 59.60 59.60 percent Aug 2025
Full Time Employment 134480.00 134837.00 Thousand Aug 2025
Government Payrolls -16.00 2.00 Thousand Aug 2025
Hiring Plans Announcements 1494.00 3200.00 Persons Aug 2025
Initial Jobless Claims 237.00 229.00 Thousand Aug 2025
Job Layoffs and Discharges 1808.00 1796.00 Thousand Jul 2025
JOLTs Job Openings 7181.00 7357.00 Thousand Jul 2025
JOLTs Job Quits 3208.00 3209.00 Thousand Jul 2025
Job Quits Rate 2.00 2.00 Percent Jul 2025
Job Openings 7780.00 7075.00 Thousand Jul 2025
Jobless Claims 4-week Average 231.00 228.50 Thousand Aug 2025
Participation Rate 62.30 62.20 percent Aug 2025
Labour Costs 123.62 123.13 points Jun 2025
Long Term Unemployment Rate 1.13 1.07 percent Aug 2025
Manufacturing Payrolls -12.00 -2.00 Thousand Aug 2025
Minimum Wages 7.25 7.25 USD/Hour Dec 2025
Non Farm Payrolls 22.00 79.00 Thousand Aug 2025
Nonfarm Payrolls Private 38.00 77.00 Thousand Aug 2025
Part Time Employment 29034.00 28437.00 Thousand Aug 2025
Population 341.15 338.51 Million Dec 2024
Productivity 116.14 115.21 points Jun 2025
Retirement Age Men 66.83 66.67 Years Dec 2025
Retirement Age Women 66.83 66.67 Years Dec 2025
U-6 Unemployment Rate 8.10 7.90 percent Aug 2025
Unemployed Persons 7384.00 7236.00 Thousand Aug 2025
Unemployment Rate 4.30 4.20 percent Aug 2025
Unit Labour Costs 1.00 6.90 percent Jun 2025
Wage Growth 5.35 4.76 percent Jul 2025
Wages 31.46 31.34 USD/Hour Aug 2025
Wages in Manufacturing 29.03 29.01 USD/Hour Aug 2025
Youth Unemployment Rate 10.50 10.00 percent Aug 2025

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
1.00 6.90 27.30 -14.30 1947 - 2025 percent Quarterly
SA

News Stream
US Labor Costs Rise Falls Short of Expectations
Unit labor costs in the US nonfarm business sector increased 1.0 percent in the second quarter of 2025, lower than preliminary estimates of 1.6 percent. It reflects a 4.3 percent increase in hourly compensation and a 3.3 percent increase in productivity. Unit labor costs increased 2.5 percent over the last four quarters. Meanwhile, unit labor costs in the total manufacturing sector increased 2.0 percent, reflecting a 4.5 percent increase in hourly compensation and a 2.5 percent increase in productivity. Manufacturing unit labor costs increased 2.6 percent from the same quarter a year ago.
2025-09-04
US Labor Costs Rise 1.6% in Q2
Unit labor costs in the US nonfarm business sector rose by 1.6% in Q2 2025, slightly above market expectations of 1.5% and easing from a revised 6.9% increase in the previous quarter, according to a preliminary estimate. The rise was driven by a 4.0% rise in hourly compensation and a 2.4% gain in labor productivity. In the manufacturing sector, unit labor costs rose 1.7%, reflecting a 3.8% rise in hourly compensation and a 2.1% improvement in productivity. On an annual basis, nonfarm unit labor costs rose 2.6%, while manufacturing unit labor costs were up 2.5%.
2025-08-07
US Labor Costs Rise More Than Expected
Unit labor costs in the US nonfarm business sector increased 6.6 percent in the first quarter of 2025, higher than preliminary estimates of 5.7 percent. It reflects a 5.0 percent increase in hourly compensation and a 1.5 percent decrease in productivity. Unit labor costs increased 1.9 percent over the last four quarters. Meanwhile, unit labor costs in the total manufacturing sector increased 2.0 percent, reflecting a 6.4 percent increase in hourly compensation and a 4.4 percent increase in productivity. Manufacturing unit labor costs increased 0.3 percent from the same quarter a year ago.
2025-06-05