U.S. Labor Productivity Climbs Much Less Than Expected In Q1

(RTTNews) - Labor productivity in the U.S. increased by much less than expected in the first quarter of 2026, according to preliminary data released by the Labor Department on Thursday.

The report said labor productivity climbed by 0.8 percent in the first quarter after jumping by a downwardly revised 1.6 percent in the fourth quarter of 2025.

Economists had expected productivity to shoot up by 1.7 percent compared to the 1.8 percent leap that had been reported for the previous quarter.

Meanwhile, the Labor Department said unit labor costs surged by 2.3 percent in the first quarter after soaring by an upwardly revised 4.6 percent in the fourth quarter.

Unit labor costs were expected to jump by 2.0 percent compared to the 4.4 percent spike that had been reported for the previous quarter.