Second Quarter 2026, Revised

Transmission of material in this release is embargoed until                                 USDL 26-1434
8:30 a.m. (ET) Thursday, September 3, 2026

Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity
Media contact:                (202) 691-5902 • PressOffice@bls.gov

                                        Productivity and Costs
                                     Second Quarter 2026, Revised
                                     
Nonfarm business sector labor productivity increased 1.4 percent in the second quarter of 2026, the 
U.S. Bureau of Labor Statistics reported today, as output increased 1.7 percent and hours worked 
increased 0.3 percent. (All quarterly percent changes in this release are seasonally adjusted annualized 
rates.) From the same quarter a year ago, nonfarm business sector labor productivity increased 2.2 
percent in the second quarter of 2026. (See tables A1 and 2.) 

Unit labor costs in the nonfarm business sector increased 1.2 percent in the second quarter of 2026, 
reflecting a 2.6-percent increase in hourly compensation and a 1.4-percent increase in productivity. Unit 
labor costs increased 1.4 percent over the last four quarters. (See tables A1 and 2.)

BLS calculates unit labor costs as the ratio of hourly compensation to labor productivity. Increases in 
hourly compensation tend to increase unit labor costs and increases in productivity tend to reduce them. 
Real hourly compensation, which takes into account consumer prices, decreased 3.3 percent in the 
second quarter of 2026 and decreased 0.1 percent over the last four quarters. The labor share, which is 
the percentage of output that accrues to workers in the form of compensation, was 52.8 percent in the 
second quarter of 2026, the lowest level in the series, which begins in the first quarter of 1947.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of 
hours worked by all workers, including employees, proprietors, and unpaid family workers. During the 
current business cycle, starting in the fourth quarter of 2019, labor productivity has grown at an 
annualized rate of 2.1 percent through the second quarter of 2026, reflecting a 2.5-percent rate of growth 
in output and a 0.4-percent rate of growth in hours worked. The 2.1-percent annualized rate of nonfarm 
business productivity growth in the current business cycle thus far is higher than the 1.5-percent rate of 
the previous business cycle, from the fourth quarter of 2007 through the fourth quarter of 2019, and the 
same as the long-term rate of 2.1 percent since the first quarter of 1947.

Manufacturing sector labor productivity increased 2.4 percent in the second quarter of 2026, as 
output increased 5.4 percent and hours worked increased 2.9 percent. The increase in manufacturing 
sector output is the largest since the second quarter of 2021, when the measure increased 6.7 percent. In 
the durable manufacturing sector, productivity increased 3.6 percent, reflecting an 8.9-percent increase 
in output and a 5.1-percent increase in hours worked. Nondurable manufacturing sector productivity 
increased 2.1 percent, as output increased 1.4 percent and hours worked decreased 0.6 percent. Total 
manufacturing sector productivity increased 1.1 percent from the same quarter a year ago. (See tables 
A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector decreased 0.3 percent in the second quarter of 2026, 
as hourly compensation increased 2.1 percent and labor productivity increased 2.4 percent. This is the 
first decline in unit labor costs for the manufacturing sector since the second quarter of 2021, when the 
measure also declined 0.3 percent. Manufacturing sector unit labor costs increased 3.4 percent from the 
same quarter a year ago. (See tables A1 and 3.)

Manufacturing sector labor productivity has grown at an annualized rate of 0.5 percent during the 
current business cycle, from the fourth quarter of 2019 through the second quarter of 2026, as output 
grew at a 0.2-percent rate and hours worked declined at a 0.3 percent rate. The 0.5-percent annualized 
rate of productivity growth in the current business cycle thus far is above the 0.1-percent rate of the 
previous business cycle, from the fourth quarter of 2007 through the fourth quarter of 2019, and is below 
the long-term rate of 2.1 percent since the first quarter of 1987.

The concepts, sources, and methods used for the manufacturing output series differ from those used in 
the business and nonfarm business output series; these output measures are not directly comparable. See 
the Technical Notes for a more detailed explanation. 

Preliminary measures for the second quarter of 2026 were announced today for the nonfinancial 
corporate sector. Productivity increased 2.2 percent, as output increased 3.9 percent and hours worked 
increased 1.7 percent. Productivity increased 3.1 percent over the last four quarters. Unit profits of 
nonfinancial corporations increased at an annualized rate of 43.0 percent in the second quarter of 2026, 
the highest rate since the second quarter of 2021. Over the last four quarters, unit profits increased 17.8 
percent, the highest rate since the fourth quarter of 2021. (See table 6.) 

Revised measures        

Measures released today are based on more recent source data than were available for the preliminary 
report; they reflect regular updates of source data from the BLS, the Bureau of Economic Analysis 
(BEA), and the Board of Governors of the Federal Reserve System. 

Table B1 presents previous and revised productivity and related measures for the business, nonfarm 
business, and manufacturing sectors for the second quarter of 2026.

In the second quarter of 2026, nonfarm business sector labor productivity, output, and hours 
worked were not revised at the displayed precision for either annualized one-quarter or four-quarter 
growth rates. Unit labor costs increased 1.2 percent in the second quarter of 2026 rather than increasing 
1.3 percent as previously reported, reflecting a 0.1-percentage point downward revision to hourly 
compensation. 

Manufacturing sector labor productivity for the second quarter of 2026 was revised up to an increase 
of 2.4 percent from a previously reported increase of 1.9 percent, reflecting a 0.8-percentage point 
upward revision to output and a 0.3-percentage point upward revision to hours worked. Durable 
manufacturing sector productivity was revised up 0.9 percentage point to an increase of 3.6 percent; 
nondurable manufacturing sector productivity was revised up 0.1 percentage point to an increase of 2.1 
percent. Total manufacturing unit labor costs decreased 0.3 percent in the second quarter of 2026, 
reflecting a 0.3-percentage point downward revision. 

Table B2 presents previous and revised productivity and related measures for the business, nonfarm 
business, manufacturing, and nonfinancial corporate sectors for the first quarter of 2026. 

In the first quarter of 2026, nonfarm business sector labor productivity and unit labor costs were not 
revised. Manufacturing sector productivity was revised up 0.3 percentage point to an increase of 2.2 
percent. As a result, unit labor costs were revised down 0.2 percentage point to an increase of 3.3 
percent. In the nonfinancial corporate sector, first-quarter 2026 productivity increased 1.4 percent, as 
previously reported. Unit labor costs and unit profits in the nonfinancial corporate sector were not 
revised. (See table 6.)

Quarterly and annual data for all sectors for recent years appear in tables 1-6. Full historical annual and 
quarterly measures, including percent changes, indexes, and levels, can be found in the file located at 
www.bls.gov/web/prod2/labor-productivity-major-sectors.xlsx.
______________
The preliminary Productivity and Costs news release for third-quarter 2026 is scheduled to be 
published on Thursday, November 5, 2026, at 8:30 a.m. (ET).




Table A1. Labor productivity growth and related measures – revised second-quarter 2026
(percent change from previous quarter at annual rate and from same quarter a year ago)
=========================================================================================================================

                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                  Percent change from:    productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Previous quarter             1.4         1.7      0.3         2.6           -3.3         1.2
                        A year ago                   2.2         2.5      0.2         3.7           -0.1         1.4
                        
Business                Previous quarter             1.2         1.6      0.4         2.4           -3.4         1.2
                        A year ago                   2.1         2.5      0.4         3.5           -0.3         1.4
                        
Manufacturing           Previous quarter             2.4         5.4      2.9         2.1           -3.7        -0.3
                        A Year ago                   1.1         1.6      0.5         4.5            0.7         3.4

 Durable                Previous quarter             3.6         8.9      5.1         1.4           -4.4        -2.2
 manufacturing          A year ago                   2.5         3.6      1.0         5.6            1.7         3.0

 Nondurable             Previous quarter             2.1         1.4     -0.6         2.9           -3.0         0.8
 manufacturing          A year ago                  -0.2        -0.6     -0.4         2.2           -1.6         2.4
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary second-quarter 2026
(percent change from previous quarter at annual rate and from same quarter a year ago)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector               Percent change from:       productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfinancial         Previous quarter               2.2          3.9      1.7         1.9           -3.9         -0.3
corporate            A year ago                     3.1          3.8      0.7         3.5           -0.3          0.4
=========================================================================================================================


=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published second-quarter 2026
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Revised                      1.4         1.7      0.3         2.6           -3.3         1.2
                   Previously published              1.4         1.7      0.3         2.7           -3.1         1.3
                        
Business                Revised                      1.2         1.6      0.4         2.4           -3.4         1.2
                   Previously published              1.2         1.6      0.4         2.6           -3.3         1.3
                        
Manufacturing           Revised                      2.4         5.4      2.9         2.1           -3.7        -0.3
                   Previously published              1.9         4.6      2.6         1.9           -3.9         0.0

 Durable                Revised                      3.6         8.9      5.1         1.4           -4.4        -2.2
 manufacturing     Previously published              2.7         7.3      4.5         1.0           -4.7        -1.6
                        
 Nondurable             Revised                      2.1         1.4     -0.6         2.9           -3.0         0.8
 manufacturing     Previously published              2.0         1.5     -0.5         3.1           -2.8         1.1
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published first-quarter 2026
(percent change from previous quarter at annual rate) 


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                                          productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Revised                     0.8          1.5      0.7         2.1           -1.4        1.3
                   Previously published             0.8          1.5      0.7         2.1           -1.4        1.3
                        
Business                Revised                     0.6          1.5      0.9         2.0           -1.5        1.3
                   Previously published             0.6          1.5      0.9         2.0           -1.5        1.3
                        
Nonfinancial            Revised                     1.4          2.8      1.4         2.1           -1.4        0.7
corporate          Previously published             1.4          2.8      1.4         2.1           -1.4        0.7

Manufacturing           Revised                     2.2          2.1      0.0         5.5            1.9        3.3
                   Previously published             1.9          1.9      0.0         5.5            1.9        3.5
 
 Durable                Revised                     4.9          5.2      0.3         7.6            3.9        2.6
 manufacturing     Previously published             4.6          4.8      0.3         7.6            3.9        2.9
 
 Nondurable             Revised                    -0.6         -1.2     -0.5         1.5           -2.0        2.1
 manufacturing     Previously published            -0.7         -1.3     -0.5         1.5           -2.0        2.2
=========================================================================================================================