In the third quarter of 2026, U.S. nonfarm productivity grew at an annualized rate of 3.6%, significantly beating market expectations of a 0.7% decline and marking the largest increase in four quarters. Over the same period, unit labor costs fell at an annualized rate of 0.7%, compared to expectations for a 1.8% increase. Additionally, the U.S. Bureau of Labor Statistics (BLS) revised its annual productivity growth figures for 2024 and 2025 upward to 3.2% and 2.3% respectively, while lowering labor cost projections for both years.