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2026.01.0813:34:25UTC+00US Labor Costs Fall Unexpectedly in Q3

In the third quarter of 2025, the United States nonfarm business sector experienced a 1.9% decrease in unit labor costs, contrary to the anticipated 1.0% increase. This marks a continuation of the downward trend following a revised 2.9% decrease in the previous quarter, according to preliminary figures. The reduction is attributed to a 4.9% boost in productivity, which surpassed the 2.9% rise in hourly compensation. Conversely, in the manufacturing sector, unit labor costs increased by 1.5%, driven by a 4.8% rise in hourly compensation and a 3.3% increase in productivity. Year-over-year, nonfarm unit labor costs rose by 1.2%, while manufacturing unit labor costs saw a 1.3% increase.

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