Macro EconomyMedium•5 November 2026•
1 min read
US Q3 Labor Productivity Grows 3.6% Beating Forecasts as Unit Labor Costs Fall
Key Facts
1US nonfarm business sector labor productivity increased at a 3.6% annualized rate in Q3, beating the 2.8% forecast.
2Unit labor costs fell by 0.7% in the third quarter, contrary to the expected 0.6% increase.
US nonfarm business sector labor productivity increased at a 3.6% annualized rate in the third quarter, exceeding the 2.8% forecast. According to reporting from investinglive.com, unit labor costs fell by 0.7% during the period, contrary to expectations of a 0.6% increase.
The US Bureau of Labor Statistics data indicates that productivity growth supports higher wages without fueling inflation, as output per hour worked is rising faster than compensation costs. This release coincides with other labor market data showing initial jobless claims fell to 189,000 on November 5, 2026, down from 195,000 in the previous period.