Nonfarm business productivity rises 0.8% in first quarter
Updated
Updated · Barron's · May 7
Nonfarm business productivity rises 0.8% in first quarter
7 articles · Updated · Barron's · May 7
The Bureau of Labor Statistics said the annualised gain missed FactSet economists' 1.6% forecast, while fourth-quarter 2025 productivity was revised to 1.6%.
Output rose 1.5% and hours worked 0.7%, while unit labour costs increased 2.3%, down from a revised 4.6% in the previous quarter.
The weaker reading may temper hopes AI is already lifting efficiency; lower labour-cost growth could ease inflation pressure, but real hourly compensation fell 0.5%.
Are soaring healthcare and energy costs the true bottleneck preventing an AI-fueled productivity boom in the US?
With AI's full impact years away, how can businesses boost efficiency now against rising costs and interest rates?
As AI automates entry-level tasks, what specific human skills will guarantee career growth in the new economy?