Third Quarter 2025, Revised

Transmission of material in this release is embargoed until                                 USDL 26-0120
8:30 a.m. (ET) Thursday, January 29, 2026

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

                                                PRODUCTIVITY AND COSTS
                                             Third Quarter 2025, Revised

Nonfarm business sector labor productivity increased 4.9 percent in the third quarter of 2025, the 
U.S. Bureau of Labor Statistics reported today, as output increased 5.4 percent and hours worked 
increased 0.5 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 1.9 
percent in the third quarter of 2025. These rates were unrevised from the preliminary estimates released 
on January 8, 2026. (See tables A1 and 2.)

Unit labor costs in the nonfarm business sector decreased 1.9 percent in the third quarter of 2025, 
reflecting a 2.9-percent increase in hourly compensation and a 4.9-percent increase in productivity. Unit 
labor costs increased 1.3 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 0.2 percent in the third  
quarter of 2025, and increased 0.3 percent over the last four quarters.

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 2.0 percent, reflecting a 2.6-percent rate of growth in output and a 0.6-percent rate of 
growth in hours worked. The 2.0-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 is just below the long-term rate of 2.1 
percent since the first quarter of 1947.

Manufacturing sector labor productivity increased 3.7 percent in the third quarter of 2025, as output 
increased 3.0 percent and hours worked decreased 0.7 percent. In the durable manufacturing sector, 
productivity increased 5.4 percent, reflecting a 3.6-percent increase in output and a 1.7-percent decrease 
in hours worked. Nondurable manufacturing sector productivity increased 1.3 percent, as output 
increased 2.3 percent and hours worked increased 1.0 percent. Total manufacturing sector productivity 
increased 2.4 percent from the same quarter a year ago. This is the largest four-quarter gain in 
manufacturing productivity since the second quarter of 2021, when it increased 4.9 percent. (See tables 
A1, 3, 4, and 5.)

Unit labor costs in the total manufacturing sector increased 1.1 percent in the third quarter of 2025, 
reflecting a 4.8-percent increase in hourly compensation and a 3.7-percent increase in productivity. Unit 
labor costs were unchanged in the durable goods sector and increased 2.7 percent in nondurable goods 
industries. Manufacturing unit labor costs increased 1.2 percent from the same quarter a year ago. (See 
tables A1 and 3.)

Manufacturing sector labor productivity has grown at an annualized rate of 0.4 percent during the 
current business cycle, as output has increased 0.1 percent and hours have declined 0.3 percent. The 0.4-
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.

Nonfinancial corporate sector labor productivity increased 3.3 percent in the third quarter of 2025, as 
output increased 4.0 percent and hours worked increased 0.7 percent. Productivity increased 2.9 percent 
over the last four quarters. Unit labor costs in the nonfinancial corporate sector increased 0.3 percent in 
the third quarter of 2025, reflecting a 3.6-percent increase in hourly compensation and a 3.3-percent 
increase in productivity. Unit labor costs increased 1.2 percent over the last four quarters. Unit profits of 
nonfinancial corporations increased 7.8 percent in the third quarter of 2025 and were unchanged over the 
last four quarters. (See tables A2 and 6.)

Revised measures        

The measures released today are based on more recent source data than were available for the 
preliminary report. Regular updates of source data from the Bureau of Economic Analysis (BEA), 
and the Board of Governors of the Federal Reserve System are reflected in data for the third 
quarter of 2025. Updates of source data from the BLS for the third quarter of 2025 were already 
incorporated in the preliminary report released on January 8, 2026.

Table B1 presents revised and previously published productivity and related measures for the nonfarm 
business, business, nonfinancial corporate, and manufacturing sectors for the third quarter of 2025.

In the third quarter of 2025, nonfarm business sector labor productivity, output, hours worked, unit 
labor costs, hourly compensation, and real hourly compensation were not revised. 

In the manufacturing sector, productivity increased 3.7 percent rather than increasing 3.3 percent as 
previously reported, reflecting a 0.4-percentage point upward revision to output. Durable manufacturing 
productivity increased 5.4 percent rather than increasing 4.7 percent as previously reported, and 
nondurable manufacturing productivity was revised up to an increase of 1.3 percent from the previously-
reported increase of 1.2 percent. Total manufacturing unit labor costs were revised down 0.4 percentage 
point to an increase of 1.1 percent due to the upward revision to productivity.

Nonfinancial corporate sector productivity was revised up 0.3 percentage point to an increase of 3.3 
percent in the third quarter of 2025, reflecting a 0.3-percentage point upward revision to output. Hours 
worked were not revised. Unit labor costs in the nonfinancial corporate sector were revised down 0.3 
percentage point to an increase of 0.3 percent.

Table B2 shows revised and previously published productivity and related measures for the nonfarm 
business, business, manufacturing, and nonfinancial corporate sectors for the second quarter of 2025.
In the second quarter of 2025, no measures were revised. 

Quarterly and annual data for all sectors for recent years appear in tables 1-6. Full historical annual and 
quarterly measures can be found at www.bls.gov/productivity/tables/.
______________
The preliminary Productivity and Costs news release for fourth-quarter 2025 is scheduled to be 
released on Thursday, March 5, 2026, at 8:30 a.m. (ET).


=============================================================================================================
                                Federal Government Shutdown
Publication of this Productivity and Costs Third Quarter 2025, Revised release was delayed due to a 
lapse in appropriations. Productivity data is not collected directly; rather, it is calculated using source 
data from other BLS programs and government agencies. Once all required source data became 
available, data presented in this release were produced.

Subsequent data releases may also be delayed. Revised release dates will be posted at  
www.bls.gov/bls/2025-lapse-revised-release-dates.htm as they become available.
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Table A1. Labor productivity growth and related measures – revised third-quarter 2025
(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            4.9          5.4      0.5        2.9            -0.2        -1.9
                        A year ago                  1.9          2.8      0.9        3.2             0.3         1.3
                        
Business                Previous quarter            5.0          5.5      0.5        2.9            -0.3        -2.1
                        A year ago                  2.1          2.8      0.6        3.4             0.5         1.3
                        
Manufacturing           Previous quarter            3.7          3.0     -0.7        4.8             1.6         1.1
                        A Year ago                  2.4          1.9     -0.5        3.6             0.6         1.2

 Durable                Previous quarter            5.4          3.6     -1.7        5.4             2.2         0.0
 manufacturing          A year ago                  3.4          2.7     -0.7        4.3             1.3         0.8

 Nondurable             Previous quarter            1.3          2.3      1.0        4.0             0.9         2.7
 manufacturing          A year ago                  1.1          1.0     -0.1        2.3            -0.6         1.1
=========================================================================================================================


=========================================================================================================================
Table A2. Labor productivity growth and related measures – revised third-quarter 2025 
(percent change from previous quarter at annual rate)


                                                Labor                   Hours    Hourly         Real hourly    Unit labor
Sector                   Percent change from:   productivity   Output   worked   compensation   compensation   costs
-------------------------------------------------------------------------------------------------------------------------       
Nonfinancial             Previous quarter           3.3          4.0      0.7        3.6             0.5         0.3
corporate                A year ago                 2.9          3.7      0.8        4.2             1.2         1.2
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=========================================================================================================================
Table B1. Labor productivity growth and related measures – revised and previously published third-quarter 2025
(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                     4.9          5.4      0.5         2.9           -0.2        -1.9
                   Previously published             4.9          5.4      0.5         2.9           -0.2        -1.9
                        
Business                Revised                     5.0          5.5      0.5         2.9           -0.3        -2.1
                   Previously published             5.0          5.5      0.5         2.9           -0.3        -2.0
                        
Nonfinancial             Revised                    3.3          4.0      0.7         3.6            0.5         0.3
corporate          Previously published             3.0          3.7      0.7         3.6            0.5         0.6
                                                                        
Manufacturing           Revised                     3.7          3.0     -0.7         4.8            1.6         1.1
                   Previously published             3.3          2.6     -0.7         4.8            1.6         1.5
                                                                                                 
 Durable                Revised                     5.4          3.6     -1.7         5.4            2.2         0.0
 manufacturing     Previously published             4.7          3.0     -1.7         5.4            2.2         0.6
                        
 Nondurable             Revised                     1.3          2.3      1.0         4.0            0.9         2.7
 manufacturing     Previously published             1.2          2.1      1.0         4.0            0.9         2.8
=========================================================================================================================


=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published second-quarter 2025
(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                     4.1          5.2      1.0         1.1           -0.5        -2.9
                   Previously published             4.1          5.2      1.0         1.1           -0.5        -2.9
                        
Business                Revised                     4.4          5.1      0.7         1.4           -0.2        -2.9
                   Previously published             4.4          5.1      0.7         1.4           -0.2        -2.9
                        
Nonfinancial            Revised                     4.6          5.8      1.1         1.8            0.2        -2.7
corporate          Previously published             4.6          5.8      1.1         1.8            0.2        -2.7

Manufacturing           Revised                     2.9          2.9      0.0         4.0            2.3         1.1
                   Previously published             2.9          2.9      0.0         4.0            2.3         1.1
 
 Durable                Revised                     4.3          4.7      0.3         4.6            2.9         0.3
 manufacturing     Previously published             4.3          4.7      0.3         4.6            2.9         0.3
 
 Nondurable             Revised                     1.6          0.9     -0.7         2.8            1.1         1.2
 manufacturing     Previously published             1.6          0.9     -0.7         2.8            1.1         1.2
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