US Labor Productivity Rises in Q2 2026, Unit Labor Costs Also Up

US nonfarm business sector labor productivity increased by 1.4 percent in Q2 2026, driven by higher output and hours worked. Concurrently, unit labor costs rose by 1.2 percent, reflecting a 2.6 percent increase in hourly compensation. Real hourly compensation, however, decreased by 3.3 percent. This data provides insight into economic efficiency and inflationary pressures.