Transmission of material in this release is embargoed until USDL 26-0785
8:30 a.m. (ET) Thursday, June 4, 2026
Technical information: (202) 691-5606 • Productivity@bls.gov • www.bls.gov/productivity
Media contact: (202) 691-5902 • PressOffice@bls.gov
Productivity and Costs
First Quarter 2026, Revised
Nonfarm business sector labor productivity increased 0.3 percent in the first quarter of 2026, the U.S.
Bureau of Labor Statistics reported today, as output increased 1.0 percent and hours worked increased
0.7 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 2.8 percent in
the first quarter of 2026, reflecting an increase in output of 3.2 percent and increase in hours worked of
0.4 percent. (See tables A1 and 2.)
Unit labor costs in the nonfarm business sector increased 1.8 percent in the first quarter of 2026,
reflecting a 2.1-percent increase in hourly compensation and a 0.3-percent increase in productivity. Unit
labor costs increased 0.5 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 1.4 percent in the first
quarter of 2026, and increased 0.6 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 53.7 percent in the first
quarter of 2026, the lowest recorded value since the series began in 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 first 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 3.2 percent in the first quarter of 2026, as output
increased 3.3 percent and hours worked saw no growth. In the durable manufacturing sector,
productivity increased 5.5 percent, reflecting a 5.8-percent increase in output and a 0.3-percent increase
in hours worked. Nondurable manufacturing sector productivity increased 0.9 percent, as output
increased 0.5 percent and hours worked decreased 0.4 percent. Total manufacturing sector productivity
increased 1.5 percent from the same quarter a year ago. (See tables A1, 3, 4, and 5.)
Unit labor costs in the total manufacturing sector increased 2.2 percent in the first quarter of 2026,
reflecting a 5.5-percent increase in hourly compensation and a 3.2-percent increase in productivity.
Manufacturing 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 first quarter of 2026, as output has
increased 0.1 percent and hours worked have declined 0.4 percent. 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 first-quarter 2026 measures were announced today for the nonfinancial corporate sector.
Productivity increased 0.7 percent in the first quarter of 2026 as output increased 2.0 percent and hours
worked increased 1.3 percent. Productivity increased 3.6 percent over the last four quarters. (See tables
A2 and 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 first quarter of 2026.
In the first quarter of 2026, nonfarm business sector productivity increased 0.3 percent, a 0.5-
percentage point downward revision from the previously reported increase of 0.8 percent. Output was
revised down 0.5 percentage point to an increase of 1.0 percent and hours worked were unchanged at a
0.7-percent increase. Unit labor costs increased 1.8 percent rather than increasing 2.3 percent as
previously reported, reflecting a 1.0-percentage point downward revision to hourly compensation and a
0.5-percentage point downward revision to labor productivity.
In the manufacturing sector, productivity was revised down in the first quarter of 2026 from a 3.6-
percent increase to a 3.2-percent increase, as output growth remained at 3.3 percent and hours worked
were revised up 0.4-percentage point. Manufacturing unit labor costs increased 2.2 percent rather than
the preliminary estimate of 2.4 percent, the combined effect of a 0.6-percentage point downward
revision to hourly compensation and a 0.4-percentage point downward revision to productivity.
Table B2 shows previous and revised productivity and related measures for the business, nonfarm
business, manufacturing, and nonfinancial corporate sectors for the fourth quarter of 2025.
In the fourth quarter of 2025, labor productivity growth in the nonfarm business sector remained at 1.6
percent, as both output and hours worked were unrevised. Hourly compensation, however, was revised
down from the previously reported increase of 6.3 percent to an increase of 3.7 percent. As a result, unit
labor costs increased 2.1 percent in the fourth quarter of 2025, rather than 4.6 percent as previously
reported.
Labor productivity in the manufacturing sector was revised down 0.3 percentage point to a decrease of
3.5 percent, the result of a 0.3-percentage point downward revision to output, which declined at a 3.7-
percent rate; hours worked were unrevised. Manufacturing sector unit labor costs had a 1.0-percentage
point downward revision, from an increase of 9.8 percent to an increase of 8.8 percent, resulting from a
1.3-percentage point downward revision to hourly compensation and a 0.3-percentage point downward
revision to productivity.
In the nonfinancial corporate sector, productivity grew 4.2 percent in the fourth quarter of 2025 rather
than 5.4 percent as previously reported, due to a 1.1-percentage point downward revision to output;
hours worked were unrevised.
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 second-quarter 2026 is scheduled to be
released on Thursday, August 6, 2026, at 8:30 a.m. (ET).
=========================================================================================================================
Table A1. Labor productivity growth and related measures – revised first-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 0.3 1.0 0.7 2.1 -1.4 1.8
A year ago 2.8 3.2 0.4 3.3 0.6 0.5
Business Previous quarter 0.1 0.9 0.8 1.9 -1.6 1.8
A year ago 2.8 3.3 0.4 3.3 0.6 0.4
Manufacturing Previous quarter 3.2 3.3 0.0 5.5 1.9 2.2
A year ago 1.5 1.3 -0.3 5.0 2.3 3.4
Durable Previous quarter 5.5 5.8 0.3 7.6 3.9 2.0
manufacturing A year ago 2.8 2.7 -0.1 6.4 3.6 3.5
Nondurable Previous quarter 0.9 0.5 -0.4 1.4 -2.1 0.5
manufacturing A year ago 0.3 -0.3 -0.6 2.3 -0.4 2.1
=========================================================================================================================
=========================================================================================================================
Table A2. Labor productivity growth and related measures – preliminary first-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 0.7 2.0 1.3 2.1 -1.4 1.4
corporate A year ago 3.6 4.1 0.5 3.5 0.8 -0.1
=========================================================================================================================
=========================================================================================================================
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 0.3 1.0 0.7 2.1 -1.4 1.8
Previously published 0.8 1.5 0.7 3.1 -0.5 2.3
Business Revised 0.1 0.9 0.8 1.9 -1.6 1.8
Previously published 0.6 1.4 0.9 2.9 -0.6 2.3
Manufacturing Revised 3.2 3.3 0.0 5.5 1.9 2.2
Previously published 3.6 3.3 -0.4 6.1 2.5 2.4
Durable Revised 5.5 5.8 0.3 7.6 3.9 2.0
manufacturing Previously published 5.3 5.4 0.1 7.7 4.0 2.3
Nondurable Revised 0.9 0.5 -0.4 1.4 -2.1 0.5
manufacturing Previously published 2.0 0.9 -1.0 2.9 -0.6 0.9
=========================================================================================================================
=========================================================================================================================
Table B2. Labor productivity growth and related measures – revised and previously published fourth-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 1.6 1.3 -0.2 3.7 1.2 2.1
Previously published 1.6 1.3 -0.2 6.3 3.7 4.6
Business Revised 1.6 1.5 -0.1 3.7 1.1 2.1
Previously published 1.6 1.5 -0.1 6.2 3.6 4.5
Nonfinancial Revised 4.2 3.5 -0.7 4.1 1.6 -0.1
corporate Previously published 5.4 4.6 -0.7 6.2 3.6 0.8
Manufacturing Revised -3.5 -3.7 -0.3 5.0 2.4 8.8
Previously published -3.2 -3.4 -0.3 6.3 3.7 9.8
Durable Revised -3.9 -3.2 0.7 6.5 3.9 10.9
manufacturing Previously published -3.5 -2.7 0.7 6.3 3.6 10.1
Nondurable Revised -2.5 -4.3 -1.9 1.8 -0.7 4.3
manufacturing Previously published -2.3 -4.2 -1.9 6.0 3.4 8.6
=========================================================================================================================
United States Department of Labor
