Svmuu News: U.S. labor productivity growth in the fourth quarter of 2025 exceeded expectations, further evidence that companies are striving to improve efficiency to control costs.Data released Thursday by the Bureau of Labor Statistics showed that, following a revised 5.2% increase in the third quarter, productivity—defined as hourly output in the nonfarm sector—grew at an annualized rate of 2.8% in the fourth quarter. The median forecast among economists surveyed had been for a 1.9% increase.The recent trend of rising productivity helps keep wage pressures in check and supports the view of officials at the Federal Reserve (Federal Reserve) that the labor market is no longer a source of inflation. Labor costs are the largest expense for many businesses, so companies are turning to new technologies and equipment to boost employee efficiency.Investments in technologies such as artificial intelligence (AI) have enabled some companies to maintain operations with a leaner workforce, which is one of the reasons behind last year’s sluggish hiring. Against the backdrop of continued growth in AI investment, economists generally expect efficiency gains to continue this year. (Jin Shi)