Updated figures released Tuesday by the U.S. Labor Department indicate that labor productivity grew more modestly than initially estimated in the fourth quarter of 2025.
According to the revised data, productivity increased by 1.8% during the quarter, below the previously reported 2.8% gain. Economists had anticipated a smaller downward revision to around 2.4%.
The revised reading marks a sharp slowdown from the third quarter, when productivity had surged by 5.2%.
The report also included a notable upward revision to unit labor costs. The measure is now estimated to have risen by 4.4% in the fourth quarter, compared with the earlier estimate of a 2.8% increase. Analysts had expected the figure to be revised up to about 3.0%.
In addition, the Labor Department adjusted its third-quarter data on unit labor costs. What was previously reported as a 1.8% decline has now been revised to show a 1.0% increase.