Labor productivity in the U.S. rose by more than expected in the second quarter, according to a report released by the Labor Department on Wednesday, although the report also showed a sharper than expected jump in labor costs.
The report said productivity increased by 1.6 percent in the second quarter following a revised 0.5 percent drop in the first quarter.
Economists had been expecting productivity to increase by about 1.3 percent compared to the 0.9 percent decrease originally reported for the previous quarter.
At the same time, the Labor Department said that unit labor costs rose by 1.7 percent in the second quarter compared to economist estimates for a 0.9 percent increase.
The report also showed a substantial upward revision to the pace of unit labor cost growth in the first quarter, with costs surging up by 5.6 percent compared to the 1.3 percent growth previously reported.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.