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. source: U.S. Bureau of Labor Statistics

Unit Labour Costs QoQ in the United States increased to 2.80 percent in the fourth quarter of 2025 from -1.80 percent in the third quarter of 2025. Unit Labour Costs QoQ in the United States averaged 2.82 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 March of 2026.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-01-29 01:30 PM
Unit Labour Costs QoQ Final
Q3 -1.9% -2.9% -1.9% -1.9%
2026-03-05 01:30 PM
Unit Labour Costs QoQ Prel
Q4 2.8% -1.8% 2% -0.7%
2026-03-24 12:30 PM
Unit Labour Costs QoQ Final
Q4 -1.8% 2.8% 2.8%

Components Last Previous Unit Reference
Nonfarm Productivity 2.80 5.20 percent Dec 2025

Related Last Previous Unit Reference
ADP Employment Change 63.00 11.00 Thousand Feb 2026
Average Hourly Earnings MoM 0.40 0.10 percent Jan 2026
Average Hourly Earnings YoY 3.70 3.70 percent Jan 2026
Average Weekly Hours 34.30 34.20 Hours Jan 2026
Challenger Job Cuts 48307.00 108435.00 Persons Feb 2026
Continuing Jobless Claims 1868.00 1822.00 Thousand Feb 2026
Employed Persons 164520.00 163992.00 Thousand Jan 2026
Employment Cost Index 0.70 0.80 percent Dec 2025
Employment Cost - Benefits 0.70 0.80 percent Dec 2025
Employment Cost - Wages 0.70 0.80 percent Dec 2025
Employment Rate 59.80 59.70 percent Jan 2026
Full Time Employment 135797.00 135215.00 Thousand Jan 2026
Government Payrolls -42.00 -16.00 Thousand Jan 2026
Challenger Hiring Plans 12755.00 5306.00 Persons Feb 2026
Initial Jobless Claims 213.00 213.00 Thousand Feb 2026
Job Layoffs and Discharges 1762.00 1701.00 Thousand Dec 2025
JOLTs Job Openings 6542.00 6928.00 Thousand Dec 2025
JOLTs Job Quits 3204.00 3193.00 Thousand Dec 2025
Job Quits Rate 2.00 2.00 Percent Dec 2025
Job Openings 6038.00 6574.00 Thousand Dec 2025
Jobless Claims 4-week Average 215.75 220.50 Thousand Feb 2026
Participation Rate 62.50 62.40 percent Jan 2026
Labour Costs 122.55 121.72 points Dec 2025
Long Term Unemployment Rate 1.07 1.14 percent Jan 2026
Manufacturing Payrolls 5.00 -8.00 Thousand Jan 2026
Minimum Wages 7.25 7.25 USD/Hour Dec 2025
Non Farm Payrolls 130.00 48.00 Thousand Jan 2026
Nonfarm Payrolls Private 172.00 64.00 Thousand Jan 2026
Part Time Employment 28743.00 28712.00 Thousand Jan 2026
Population 342.28 340.97 Million Dec 2025
Productivity 119.64 118.81 points Dec 2025
Retirement Age Men 67.00 66.83 Years Dec 2026
Retirement Age Women 67.00 66.83 Years Dec 2026
U-6 Unemployment Rate 8.00 8.40 percent Jan 2026
Unemployed Persons 7362.00 7503.00 Thousand Jan 2026
Unemployment Rate 4.30 4.40 percent Jan 2026
Unit Labour Costs 2.80 -1.80 percent Dec 2025
Wage Growth 3.68 3.89 percent Dec 2025
Wages 31.95 31.83 USD/Hour Jan 2026
Wages in Manufacturing 29.63 29.52 USD/Hour Jan 2026
Youth Unemployment Rate 9.00 10.40 percent Jan 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
2.80 -1.80 27.30 -14.30 1947 - 2025 percent Quarterly
SA

News Stream
US Labor Costs Rise More than Expected
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.
2026-03-05
US Labor Costs Fall in Q3
Unit labor costs in the US nonfarm business sector declined by 1.9% in Q3 2025, in line with preliminary estimates, and extending the downward trend after a 2.9% drop in the previous quarter. The decline came as productivity rose 4.9%, outpacing a 2.9% increase in hourly compensation. In the manufacturing sector, unit labor costs rose 1.1%, reflecting a 3.7% rise in hourly compensation and a 3% improvement in productivity. On an annual basis, nonfarm unit labor costs rose 1.3%, while manufacturing unit labor costs were up 1.2%.
2026-01-29
US Labor Costs Fall Unexpectedly in Q3
Unit labor costs in the US nonfarm business sector declined by 1.9% in Q3 2025, significantly below expectations of a 1.0% rise and extending the downward trend after a revised 2.9% drop in the previous quarter, preliminary estimates showed. The decline came as productivity rose 4.9%, outpacing a 2.9% increase in hourly compensation. In the manufacturing sector, unit labor costs rose 1.5%, reflecting a 4.8% rise in hourly compensation and a 3.3% improvement in productivity. On an annual basis, nonfarm unit labor costs rose 1.2%, while manufacturing unit labor costs were up 1.3%.
2026-01-08