Washington [US], August 27 (ANI): Software publishers recorded the strongest productivity growth among selected US service-providing industries in 2025, even as rising labor costs remained a widespread concern across the sector, according to the US Bureau of Labor Statistics (BLS).
As per the official data released on Wednesday, Labor productivity increased in 15 of 30 selected service-providing industries in 2025, while unit labor costs increased in 24 of the 30 industries, highlighting a mixed picture for the US services sector.
Software publishers stood out as the strongest performer, with labor productivity rising 12.9 per cent in 2025. The industry had also recorded a 4.0 per cent increase in productivity in 2024.
Gambling industries also recorded strong productivity performance in 2025, with output rising 11.2 per cent, offsetting an 8.3 per cent increase in hours worked. Over the 2019-2025 period, gambling recorded productivity growth of 8.2 per cent per year, while output increased 10.0 per cent annually, making it one of the strongest-performing service industries over the period.
The BLS said, "Productivity exceeded 8.0-per cent growth in three industries: software publishers (+12.9 per cent), line-haul railroads (+11.3 per cent), and wireless telecommunications carriers (+8.8 per cent) .... Couriers and messengers posted the steepest productivity decline - falling 8.5 per cent in 2025".
All three industries recorded higher output while hours worked declined, suggesting that the increase in output was achieved with fewer hours worked. Overall, seven industries recorded both growth in output and a decline in hours worked during 2025.
However, the productivity gains were not broad-based across all service industries. The biggest decline was recorded by wired telecommunications carriers, where productivity fell 10.8 per cent. Output in the industry declined 8.3 per cent, while hours worked increased 2.8 per cent.
The data also showed pressure from labor costs across much of the service sector. Unit labor costs increased in 24 of 30 industries. The BLS defines unit labor costs as the total labor costs required to produce a unit of output, and said they rise when hourly compensation grows faster than productivity.
Hourly compensation increased in 28 of the 30 industries measured. In nine industries, productivity and unit labor costs increased at the same time, with hourly compensation growth exceeding productivity growth in all nine.
The longer-term data shows that software has also been a major productivity and output performer. From 2019 to 2025, software publishers recorded output growth of 10.6 per cent per year, the highest among the selected service industries. Over the longer period, software publishers recorded a 9.7 per cent annual gain in productivity, supported by output growth of 16.2 per cent.
Overall, the BLS data presents a clear contrast within the US services economy: technology-linked industries such as software and wireless telecommunications recorded strong productivity gains, while many industries continued to face rising labor costs. (ANI)
Software and Gambling leads US productivity gains, but rising labor costs hit most service industries: BLS
