US productivity rises 3.5% annualized in Q3 2026 as unit labor costs fall
US nonfarm labor productivity rose at a 3.5% annualized rate in Q3 2026, its largest increase since Q3 2025 and its third consecutive quarterly improvement. Nonfarm business output grew at a 3.7% annualized rate, while hourly compensation increased 2.9%. Unit labor costs fell 0.7%, their first quarterly decline since Q2 2025.