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Productivity up 0.3 percent in first quarter 2026

June 15, 2026

Nonfarm business sector labor productivity increased 0.3 percent in the first quarter of 2026, as output increased 1.0 percent and hours worked increased 0.7 percent. This is the smallest increase in nonfarm business sector labor productivity since the first quarter of 2025, when there was a 0.9-percent decrease. From the first quarter of 2025, nonfarm business sector labor productivity increased 2.8 percent.

Chart Image
Chart Data

Nonfarm business labor productivity and related measures, percent change from previous quarter
Date	Labor productivity	Output	Unit labor costs	Hours worked	Hourly compensation
Q1 2020	-1.6	-7.3	11.5	-5.7	9.8
Q2 2020	20.9	-32.9	3.9	-44.5	25.6
Q3 2020	6.4	46.1	-11.4	37.3	-5.8
Q4 2020	-3.2	5.6	14.2	9.0	10.5
Q1 2021	2.9	7.2	-2.5	4.2	0.3
Q2 2021	0.8	8.2	5.8	7.3	6.7
Q3 2021	-2.4	3.6	8.0	6.1	5.4
Q4 2021	2.3	8.6	3.5	6.1	5.9
Q1 2022	-4.9	-2.2	7.2	2.9	1.9
Q2 2022	-2.9	-0.1	3.5	2.9	0.5
Q3 2022	0.2	2.9	7.0	2.7	7.3
Q4 2022	2.3	3.1	-1.7	0.8	0.5
Q1 2023	0.9	2.9	2.2	1.9	3.2
Q2 2023	4.1	2.9	2.4	-1.1	6.5
Q3 2023	5.1	5.5	1.2	0.4	6.3
Q4 2023	3.9	3.7	1.2	-0.2	5.2
Q1 2024	0.2	0.2	5.5	0.0	5.8
Q2 2024	3.7	4.0	1.1	0.3	4.8
Q3 2024	3.7	3.9	1.1	0.2	4.8
Q4 2024	1.4	1.7	2.9	0.3	4.4
Q1 2025	-0.9	-0.9	7.3	0.0	6.3
Q2 2025	4.2	5.2	-2.9	1.0	1.2
Q3 2025	5.2	5.4	1.0	0.2	6.2
Q4 2025	1.6	1.3	2.1	-0.2	3.7
Q1 2026	0.3	1.0	1.8	0.7	2.1
Note: Quarterly data are seasonally adjusted at annual rates.

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.

These data are from the Productivity program and are seasonally adjusted at annual rates, subject to revision. See "Productivity and Costs — First Quarter 2026, Revised" to learn more. We also have more charts on productivity and costs. Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked for all persons, including employees, proprietors, and unpaid family workers.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Productivity up 0.3 percent in first quarter 2026 at https://www.bls.gov/opub/ted/2026/productivity-up-0-3-percent-in-first-quarter-2026.htm (visited June 16, 2026).

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