US non-farm business sector labour productivity up 2.4% QoQ in Q2 2025

It increased by 1.3 per cent year on year (YoY) in the quarter.

Unit labour costs in the non-farm business sector increased by 1.6 per cent QoQ in Q2 2025, reflecting a 4-per cent QoQ increase in hourly compensation and a 2.4-per cent QoQ increase in productivity. These increased by 2.6 per cent YoY in the quarter.

BLS calculates unit labour costs as the ratio of hourly compensation to labour productivity. Increases in hourly compensation tend to increase unit labour costs and increases in productivity tend to reduce them.

Real hourly compensation, which takes into account consumer prices, increased by 2.3 per cent QoQ and 1.4 per cent YoY in Q2 2025, a BLS release said.

Manufacturing sector labour productivity increased by 2.1 per cent QoQ in Q2 2025, as output increased by 2.3 per cent and hours worked increased by 0.3 per cent. It increased by 1.5 per cent YoY in the quarter. This was the largest YoY gain in manufacturing productivity since Q2 2021, when it increased by 4.8 per cent.

Unit labour costs in the total manufacturing sector increased by 1.7 per cent QoQ in Q2 2025, reflecting a 3.8-per cent QoQ increase in hourly compensation and a 2.1-per cent QoQ increase in productivity.

ALCHEMPro News Desk (DS)