Financial News: U.S. Labor Productivity Jumps Much Less Than Previously

U.S. Labor Productivity Jumps Much Less Than Previously Estimated In Q4

03/24/2026 - 08:39:00 (RTTNews)

(RTTNews) - Revised data released by the Labor Department on Tuesday showed labor productivity in the U.S. increased by much less than previously estimated in the fourth quarter of 2025.

The Labor Department said labor productivity shot up by 1.8 percent in the fourth quarter compared to the previously reported 2.8 percent surge. Economists had expected the jump in labor productivity to be downwardly revised to 2.4 percent.

The much smaller than previously estimated increase in labor productivity compares to the 5.2 percent spike in the third quarter.

The report also showed a significant upward revision to the surge in unit labor costs in the fourth quarter, which soared by 4.4 percent compared to the previously reported 2.8 percent jump. The spike in unit labor costs was expected to be upwardly revised to 3.0 percent.

The Labor Department also said the 1.8 percent slump in unit labor costs that had been reported for the third quarter was revised to a 1.0 percent increase.

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