US labor productivity accelerated in Q3, with output per hour in the nonfarm
business sector rising 3.6% annualized — the fastest pace in a year — versus a
revised 2.1% in Q2, the Bureau of Labor Statistics said. Unit labor costs fell
0.7%, the first decline since Q2 2025. The BLS said firms are increasing
investment in AI, software and equipment; those investments may be translating
into higher output per worker and helping limit pass-through of rising input
costs to consumer and producer prices. Separately, initial jobless claims fell
last week to levels comparable with the 1969 low, underscoring continued
labor-market resilience.
