The Labor Department reported on Thursday that U.S. labor productivity rose far more than forecast in the third quarter of 2025.
Productivity jumped 4.9% during the quarter, following an upwardly revised 4.1% increase in the second quarter. Economists had expected a more modest gain of 3.6%, compared with the previously reported 3.3% rise.
At the same time, unit labor costs declined sharply, falling 1.9% in the third quarter after a revised 2.9% drop in the previous quarter. By contrast, analysts had projected unit labor costs would increase by 0.8%, following an earlier estimate of a 1.0% rise in the second quarter.