Second Quarter 2026, Preliminary

Transmission of material in this release is embargoed until                         USDL 26-1290
8:30 a.m. (ET) Thursday, August 6, 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, Preliminary

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 1.3 percent in the second quarter of 2026, 
reflecting a 2.7-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 3.1 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 52.9 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 1.9 percent in the second quarter of 2026, as 
output increased 4.6 percent and hours worked increased 2.6 percent. In the durable manufacturing 
sector, productivity increased 2.7 percent, reflecting a 7.3-percent increase in output and a 4.5-percent 
increase in hours worked. Nondurable manufacturing sector productivity increased 2.0 percent, as output 
increased 1.5 percent and hours worked decreased 0.5 percent. Total manufacturing sector productivity 
increased 0.9 percent from the same quarter a year ago. Durable goods manufacturing productivity 
increased 2.2 percent over the last 4 quarters, as output grew 3.1 percent and hours worked rose 0.9 
percent. In contrast, productivity declined 0.3 percent in nondurable goods industries over the last 4 
quarters, as output declined 0.6 percent and hours worked declined 0.4 percent. (See tables A1, 3, 4, and 
5.)

Unit labor costs in the total manufacturing sector were unchanged in the second quarter of 2026, as a 
1.9-percent increase in hourly compensation was offset by a 1.9-percent increase in productivity. 
Manufacturing unit labor costs increased 3.5 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.

Revised measures

Regular updates of source data published in June and July by the BLS and the Bureau of Economic 
Analysis (BEA) are reflected in revised data for all sectors for the first quarter of 2026. Regular updates 
of source data published in June and July by the Board of Governors of the Federal Reserve System are 
reflected in revised data for the manufacturing sectors for fourth-quarter 2025 and first-quarter 2026.

Table B1 presents revised and previously published labor productivity and related measures for the 
nonfarm business, business, and manufacturing sectors for the first quarter of 2026. Table A2 presents 
these measures for the nonfinancial corporate sector.

Nonfarm business sector productivity was revised up 0.5 percentage point to an increase of 0.8 
percent in the first quarter of 2026; output was revised up 0.5 percentage point to an increase of 1.5 
percent and hours worked were not revised. (See table B1.) The upward revision to productivity 
translated to a 0.5-percentage point downward revision to first-quarter unit labor costs, to a rate of 1.3 
percent; hourly compensation was not revised.

Manufacturing sector productivity was revised down 1.3 percentage point to an increase of 1.9 
percent in the first quarter of 2026, reflecting a 1.4-percentage point downward revision to output; 
hours worked were not revised. Durable manufacturing sector productivity was revised down 0.9 
percentage point to an increase of 4.6 percent. Nondurable manufacturing sector productivity was 
revised down 1.6 percentage point to a decrease of 0.7 percent. In the first quarter of 2026, total 
manufacturing unit labor costs were revised up 1.3 percentage point to an increase of 3.5 percent, 
reflecting the 1.3-percentage point downward revision to productivity; hourly compensation was not 
revised. (See tables B1 and 3.)

Nonfinancial corporate sector productivity was revised up 0.7 percentage point to an increase of 1.4 
percent in the first quarter of 2026. Unit labor costs in the nonfinancial corporate sector were revised 
down 0.7 percentage point to an increase of 0.7 percent. (See table A2 and 6.)

Quarterly and annual data for all sectors from 2024 forward 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 revised Productivity and Costs news release for second-quarter 2026 is scheduled to be 
released on Thursday, September 3, 2026, at 8:30 a.m. (ET).



=========================================================================================================================
Table A1. 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
-------------------------------------------------------------------------------------------------------------------------
Nonfarm business        Previous quarter            1.4          1.7      0.3         2.7           -3.1         1.3
                        A year ago                  2.2          2.5      0.2         3.7           -0.1         1.4
                        
Business                Previous quarter            1.2          1.6      0.4         2.6           -3.3         1.3
                        A year ago                  2.1          2.5      0.4         3.6           -0.2         1.4
                        
Manufacturing           Previous quarter            1.9          4.6      2.6         1.9           -3.9         0.0
                        A Year ago                  0.9          1.3      0.4         4.5            0.6         3.5

 Durable                Previous quarter            2.7          7.3      4.5         1.0           -4.7        -1.6
 manufacturing          A year ago                  2.2          3.1      0.9         5.5            1.7         3.3

 Nondurable             Previous quarter            2.0          1.5     -0.5         3.1           -2.8         1.1
 manufacturing          A year ago                 -0.3         -0.6     -0.4         2.2           -1.5         2.5
=========================================================================================================================


=========================================================================================================================
Table A2. 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
-------------------------------------------------------------------------------------------------------------------------       
Nonfinancial             Revised                    1.4          2.8      1.4         2.1           -1.4         0.7
corporate          Previously published             0.7          2.0      1.3         2.1           -1.4         1.4
=========================================================================================================================


=========================================================================================================================
Table B1. 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             0.3          1.0      0.7         2.1           -1.4         1.8
                        
Business                Revised                     0.6          1.5      0.9         2.0           -1.5         1.3
                   Previously published             0.1          0.9      0.8         1.9           -1.6         1.8
                        
Manufacturing           Revised                     1.9          1.9      0.0         5.5            1.9         3.5
                   Previously published             3.2          3.3      0.0         5.5            1.9         2.2

 Durable                Revised                     4.6          4.8      0.3         7.6            3.9         2.9
 manufacturing     Previously published             5.5          5.8      0.3         7.6            3.9         2.0
                        
 Nondurable             Revised                    -0.7         -1.3     -0.5         1.5           -2.0         2.2
 manufacturing     Previously published             0.9          0.5     -0.4         1.4           -2.1         0.5
=========================================================================================================================