US labor productivity rose +2.4% QoQ and +1.3% YoY in Q2 2025, as output growth outpaced hours worked, indicating improved efficiency across nonfarm businesses.

• Output increased +3.7% QoQ, while hours worked rose +1.3%.
• Hourly compensation rose +4.0% QoQ (+3.9% YoY), lifting real hourly compensation by +2.3% QoQ.
• Unit labor costs increased +1.6% QoQ and +2.6% YoY, the highest since Q1 2024.
• Manufacturing productivity rose +2.1% QoQ, led by durable goods (+3.3%), while nondurable productivity grew just +1.2%.
• Nondurable manufacturing unit labor costs surged +3.8% QoQ, the steepest gain among tracked sectors.