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2025.09.0412:35:34UTC+00US Labor Costs Rise Falls Short of Expectations

In the second quarter of 2025, unit labor costs within the US nonfarm business sector rose by 1.0 percent, a slight decrease from the initial projection of 1.6 percent. This change is attributed to a 4.3 percent rise in hourly compensation paired with a 3.3 percent increase in productivity. Over the past four quarters, unit labor costs have grown by 2.5 percent. In the manufacturing sector, unit labor costs climbed by 2.0 percent, driven by a 4.5 percent increase in hourly compensation alongside a 2.5 percent boost in productivity. Compared to the same quarter in the previous year, manufacturing unit labor costs saw a 2.6 percent increase.

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