US labor productivity improves during second quarter

07/08/2025 Argaam
Labor productivity in the US saw a significant rebound in the second quarter of 2025, reflecting a partial recovery in the labor market amid inflationary pressures and wage challenges.
 
The report said labor productivity shot up by 2.4% in Q2 2025 on a quarterly basis and 1.3% compared to the same quarter in 2024, according to preliminary data released by the Labor Department on Thursday.
 
Non-agricultural production rose by 3.7% quarter-on-quarter (QoQ), while the number of hours worked increased by 1.3%.
 
The data also showed that unit labor costs (a key indicator of wage growth) rose by 1.6% QoQ in the three months ending in June.
 
Furthermore, the annual increase in unit labor costs accelerated to 2.6% in the second quarter, indicating mounting wage-related inflationary pressures.

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