Washington DC [US], November 5 (ANI): Labour productivity in the United States' nonfarm business sector increased by 3.6 per cent in the third quarter of 2026, while unit labour costs declined by 0.7 per cent, according to preliminary data released by the US Bureau of Labor Statistics (BLS) on Thursday.
The latest data showed that productivity growth was supported by a 3.7 per cent increase in output, while hours worked rose by just 0.1 per cent during the July-September quarter.
"Nonfarm business sector labor productivity increased 3.6 percent in the third quarter of 2026," the BLS said.
The figures represent seasonally adjusted annualised rates, while productivity increased 2.1 per cent compared with the corresponding quarter of the previous year.
The report also highlighted a 2.9 per cent increase in hourly compensation alongside the 3.6 per cent productivity gain.
However, unit labour costs remained 2.4 per cent higher compared with the same quarter a year earlier.
The BLS explained that unit labour costs are calculated as the ratio of hourly compensation to labour productivity. Higher hourly compensation tends to increase labour costs, while improvements in productivity tend to reduce them.
Meanwhile, real hourly compensation, which adjusts wages for changes in consumer prices, increased 1.1 per cent during the third quarter and rose 1.0 per cent over the past four quarters.
The report also showed that labour's share of economic output declined to 53.0 per cent in the third quarter, marking the lowest level since the series began in the first quarter of 1947.
During the current business cycle, beginning in the fourth quarter of 2019, nonfarm business productivity has grown at an annualised rate of 2.2 per cent, compared with 1.5 per cent during the previous business cycle from 2007 to 2019.
In the manufacturing sector, labour productivity increased 0.3 per cent during the third quarter, as output rose 1.3 per cent and hours worked increased 1.0 per cent.
Productivity in durable goods manufacturing increased 2.2 per cent, while nondurable manufacturing productivity declined 1.7 per cent.
Manufacturing unit labour costs increased 2.7 per cent during the quarter and were 4.0 per cent higher than a year earlier.
The BLS also revised second-quarter nonfarm business productivity growth upward to 2.1 per cent from the previously reported 1.4 per cent, reflecting stronger output growth.
The latest productivity figures come days after separate US labour market data showed an increase in job openings and voluntary resignations during September.
According to the Job Openings and Labor Turnover Survey (JOLTS) released by the US Bureau of Labor Statistics on November 3, job openings increased to 7.52 million in September 2026 from 7.19 million in August, marking a rise of 333,000.
The job openings rate stood at 4.5 per cent in September, compared with 4.3 per cent in August.
"The number of job openings was little changed at 7.5 million in September," the BLS said in its official release.
The report further noted that hires and total separations remained broadly stable at 5.4 million and 5.3 million, respectively, indicating relatively steady labour market conditions.
Meanwhile, the number of workers voluntarily quitting their jobs increased to 3.4 million, while layoffs and discharges remained little changed at 1.6 million. (ANI)
US labour productivity rises 3.6% in Q3 2026, unit labour costs decline 0.7%
