U.S. Nonfarm Business Productivity Up 4.9% in Q3 2025


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Nonfarm business sector labor productivity grew by 
annualized rate of 4.9% in the third quarter of 2025, the Bureau of Labor 
Statistics reported Thursday (1/29)/.

   Unit labor costs decreased by 1.9% during the period, reflecting a downward 
shift in the price of labor per unit of production for U.S. businesses.

   This decline in costs occurred even as hourly compensation rose 2.9%, as 
productivity growth effectively offset higher wages.

   In manufacturing, productivity grew 3.3% while unit labor costs rose 1.5%, 
highlighting a slightly different cost dynamic than the broader economy. These 
figures remained unrevised from earlier reports, suggesting that the industrial 
sector's efficiency levels remained durable throughout the second half of the 
year.

   Over the last four quarters, nonfarm productivity has increased 1.9%, 
signaling a steady post-pandemic trend of higher output per hour across the 
U.S. workforce.

   Real hourly compensation, which is adjusted for consumer price changes, saw 
a 0.2% decrease despite nominal wage gains.




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