BLS revises first-quarter productivity up to 0.8% and unit labor costs down to 1.3%
The Bureau of Labor Statistics revised first-quarter 2026 nonfarm business productivity from a 0.3% increase to a 0.8% increase when it released preliminary second-quarter data on Aug. 6.
Output growth was revised from 1.0% to 1.5%, while hours worked remained at a 0.7% increase. The stronger productivity estimate reduced the unit-labor-cost increase from 1.8% to 1.3%.
Hourly compensation was unchanged by the revision
Nominal hourly compensation remained at a 2.1% increase, and real hourly compensation remained at a 1.4% decline. Those are annualized quarterly rates.
The revision matters because unit labor costs compare compensation with output per hour. With compensation unchanged, a higher productivity estimate mechanically lowers the estimated increase in labor cost per unit of output.
Manufacturing revisions moved in the other direction
First-quarter manufacturing productivity was revised down from 3.2% to 1.9%, while manufacturing unit labor costs were revised up from 2.2% to 3.5%. Durable-goods productivity was revised to 4.6%, and nondurable-goods productivity was revised to a 0.7% decline.
The revisions replace the earlier preliminary figures and should be used when comparing the first quarter with the new second-quarter estimates.
Sources
- Productivity and Costs, Second Quarter 2026, Preliminary, U.S. Bureau of Labor Statistics
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