Unit labor costs in the United States fell by 1.9% in the third quarter of 2025 on a quarter-over-quarter basis, reversing a 1.0% increase recorded in the previous quarter, according to data updated on 29 January 2026.
Both the current and previous readings refer to quarter-over-quarter changes in unit labor costs, meaning the latest figure reflects how costs per unit of output in Q3 2025 compare with Q2 2025, while the prior 1.0% reading captured the change from Q1 to Q2 2025. The shift from a positive to a negative reading signals that labor cost pressures eased notably in the third quarter, after having risen in the prior period.
The decline in unit labor costs may be interpreted by markets as a potential relief on cost-push inflation pressures, though the broader implications for wages, productivity, and corporate margins would depend on accompanying data releases and sector-specific developments not detailed in this release.
