Labor productivity in the non-farm sector of the United States increased by 3.6% in the third quarter of 2026. According to preliminary data released, this growth occurred while unit labor costs decreased by 0.7%.
Analysis of Productivity and Cost Statistics
Recent data shows that productivity growth was influenced by a 3.7% increase in output, while hours worked increased by only 0.1%. Based on these statistics, the growth of non-farm labor productivity in the third quarter of 2026 is reported to be 3.6%.
Read more: Oman's Ministry of Agriculture Signs Four Agreements Worth 13 Million Omani Rials
This data refers to seasonally adjusted annual rates and also indicates that productivity has grown by 2.1% compared to the same period last year. Alongside this, the report also notes a 2.9% increase in compensation for hours worked, while unit labor costs are 2.4% higher compared to last year.
Changes in the Labor Market and Employment
The United States government has explained that unit labor costs are calculated as the ratio of compensation for hours worked to labor productivity. An increase in compensation for hours worked typically leads to higher labor costs, while improvements in productivity reduce these costs. Additionally, real compensation for hours worked, which adjusts wages for changes in consumer prices, increased by 1.1% in the third quarter and has grown by 1.0% over the past four quarters.
The report also indicates that the share of labor in economic output in the third quarter decreased to 53.0%, the lowest level since the beginning of this series of statistics in the first quarter of 1947. During the current business cycle, which began in the fourth quarter of 2019, non-farm labor productivity has grown at an annual rate of 2.2%.
In the manufacturing sector, labor productivity increased by 0.3% in the third quarter, and unit labor costs in this sector rose by 2.7%, which is 4.0% higher than last year. Additionally, statistics show that the number of job openings increased to 7.52 million in September 2026.
Read more: Opening of the Special Abilities Academy in Oman Supported by the Minister of Social Development · Start of Working-Level Negotiations Between Ukraine and Russia Hosted by Abu Dhabi
