US worker productivity grew 2.8 percent in fourth quarter
US worker productivity rose at a 2.8% rate in the final quarter of 2025. This solid growth helped maintain moderate labor costs despite a slowing US economy.
Worker productivity in the United States experienced a deceleration during the fourth quarter of 2025, though the underlying trend remains robust enough to keep labor cost growth relatively contained. According to data released by the Bureau of Labor Statistics on Thursday, nonfarm productivity—which tracks hourly output per worker—rose at an annualized rate of 2.8% during the final three months of the year. This follows a significantly stronger, upwardly revised pace of 5.2% recorded in the third quarter.
The latest figures surpassed market expectations, as economists surveyed by Reuters had anticipated a more modest 1.9% increase. On a year-over-year basis, productivity grew by 2.8%, while the full-year figure for 2025 settled at 2.2%. The release of this specific report had been delayed due to a government shutdown occurring last year.
