The U.S. Bureau of Labor Statistics reported that nonfarm business labor productivity increased 1.4% in the second quarter of 2026, as output rose 1.7% and hours worked increased 0.3%. Productivity was up 2.2% from a year earlier, while unit labor costs increased 1.2%, reflecting a 2.6% rise in hourly compensation.
Manufacturing productivity increased 2.4%, driven by a 5.4% gain in output, while unit labor costs declined 0.3%. In the nonfinancial corporate sector, productivity rose 2.2%, while unit profits surged 43%, marking the strongest quarterly increase since 2021.
Meanwhile, labor’s share of output fell to 52.8%, the lowest level recorded in the series dating back to 1947.
