U.S. labor productivity growth accelerated in the third quarter, while unit labor costs declined.

U.S. nonfarm output per hour rose at an annualized rate of 3.6% in the third quarter, up from an upwardly revised 2.1% in the previous quarter. Unit labor costs fell 0.7%, the first decline since the second quarter of 2025. Businesses are increasing their investments in artificial intelligence, software, and equipment to improve employee productivity. The number of Americans filing for unemployment benefits for the first time last week fell to its lowest level since 1969.