FX.co ★ US Labor Costs Fall in Q3

In the third quarter of 2025, unit labor costs in the U.S. nonfarm business sector fell by 1.9%, consistent with earlier estimates, continuing the downward trend from a 2.9% decline observed in the previous quarter. This reduction was driven by a 4.9% increase in productivity, which outstripped a 2.9% rise in hourly compensation. Conversely, in the manufacturing sector, unit labor costs edged up by 1.1%, influenced by a 3.7% increase in hourly compensation and a 3% boost in productivity. Annually, unit labor costs in the nonfarm sector increased by 1.3%, while those in manufacturing rose by 1.2%.