Financial News: U.S. Labor Productivity Jumps Much More Than Expected

U.S. Labor Productivity Jumps Much More Than Expected In Q2

08/06/2026 - 10:33:00 (RTTNews)

(RTTNews) - The Labor Department released a report on Thursday showing labor productivity in the U.S. increased by much more than expected in the second quarter of 2026.

The report said labor productivity shot up by 1.4 percent in the second quarter after climbing by an upwardly revised 0.8 percent in the first quarter.

Economists had expected labor productivity to rise by 0.7 percent compared to the 0.3 percent increase that had been reported for the previous quarter.

The bigger than expected jump in labor productivity, a measure of output per hour, came as output surged by 1.7 percent while hours worked rose by 0.3 percent.

The Labor Department also said unit labor costs leapt by 1.3 percent in the second quarter, matching an upwardly revised increase in the first quarter.

Unit labor costs were expected to surge by 2.2 percent compared to the 1.8 percent jump that had been reported for the previous quarter.

The increase in unit labor costs came as hourly compensation shot up by 2.7 percent, more than offsetting the growth in productivity.

Meanwhile, real hourly compensation, which takes changes in consumer prices into account, plunged by 3.1 percent during the quarter.

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