🚨 U.S. productivity is accelerating 📈 $ARPA
🇺🇸 Labor productivity jumped +4.9% annualized in Q3 2025, the strongest gain in two years. 🎯
This follows an upwardly revised +4.1% in Q2, marking the second straight quarter above 4% growth.
Unit labor costs fell -1.9% in Q3, after also declining in Q2—the first back-to-back drops since 2019. This suggests companies are producing more while paying less per unit of output.
Much of the momentum is tied to new technology and equipment boosting worker efficiency.
The mix of rising productivity and falling labor costs could ease wage-driven inflation while supporting growth—but it also implies firms can expand without hiring more workers.
Is the AI-driven productivity boom finally here?
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