U.S. nonfarm business labor productivity rose at a 3.6% annualized rate in the third quarter of 2026, accelerating from an upwardly revised 2.1% in the previous quarter, according to preliminary Bureau of Labor Statistics data released November 5. Unit labor costs fell 0.7%, while workers’ share of output reached its lowest level in records dating to 1947.

• Output increased 3.7% while hours worked rose just 0.1%, measured at seasonally adjusted annualized rates.
• Hourly compensation increased at a 2.9% annualized rate. After adjusting for inflation, compensation rose 1.1%.
• Compared with a year earlier, productivity increased 2.1% and unit labor costs rose 2.4%.
• Labor’s share of nonfarm business output—the portion paid to workers as compensation—fell to 53.0%, a record low.
• Second-quarter productivity growth was revised upward from 1.4% to 2.1%.
• Manufacturing productivity increased at a 0.3% annualized rate, while manufacturing unit labor costs rose 2.7%.
• Revised third-quarter figures are scheduled for December 8.

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Editor’s Note: This is a developing story. This article may be updated as more details become available.