FX.co ★ US Labor Costs Fall in Q3

Unit labor costs in the US nonfarm business sector fell 0.7% in the third quarter of 2026, defying market expectations for a 0.6% increase, according to preliminary estimates. Hourly compensation increased 2.9%, while labor productivity rose 3.6%. In the total manufacturing sector, unit labor costs climbed 2.7%, reflecting a 3% rise in hourly compensation and a 0.3% gain in labor productivity. Year-on-year, unit labor costs in the nonfarm business sector were up 2.4%, and manufacturing unit labor costs jumped 4%.