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Economic Buzz: US labor productivity rebounds in Q2
08-Aug-2025 09:36
Labor productivity in the U.S. saw a significant rebound in the second quarter of 2025, according to preliminary data released by the Labor Department on Thursday.

The report said labor productivity shot up by 2.4 percent in the second quarter after tumbling by a downwardly revised 1.8 percent in the first quarter.

The rebound by labor productivity, a measure of output per hour, came as output spiked by 3.7 percent compared to a 1.3 percent increase by hours worked.

The Labor Department also said unit labor costs jumped by 1.6 percent in the second quarter after soaring by an upwardly revised 6.9 percent in the first quarter.

Unit labor costs were expected to increase by 1.5 percent compared to the 6.6 percent spike that had been reported for the previous quarter.

The sharp increase by labor productivity helped offset a continued surge by hourly compensation, which shot up by 4.0 percent in the second quarter after jumping by 5.0 percent in the first quarter.

Real hourly compensation, which takes changes in consumer prices into account, surged by 2.3 percent in the second quarter after climbing by 1.2 percent in the first quarter.

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