Labor productivity in the US grew faster than expected in the second quarter, mainly because companies sought to ease the pressure brought about by rising costs. According to data released on Thursday, non-agricultural productivity increased by 1.4% on an annualized basis in the second quarter, higher than the 0.8% increase in the first quarter after an upgrade. This result also surpassed the market's general forecast. Unit labor costs, on the other hand, rose 1.3%, lower than expected. Federal Reserve officials, investors, and economists are looking for signs to determine whether hundreds of billions of dollars in artificial intelligence investments are boosting labor productivity. However, due to large quarterly fluctuations in official data, it will take time to observe clear trends. Labor costs are one of many companies' biggest expenses, and improving efficiency can raise wages without driving up inflation. In the long run, increasing productivity will help improve living standards, but some economists worry that if the productivity growth brought about by AI continues, some companies may delay hiring or even cut employees. Productivity growth in the second quarter was due to the strongest increase in output since the third quarter of 2025, while the increase in employee working hours was moderate.

Labor productivity in the US grew faster than expected in the second quarter, mainly because companies sought to ease the pressure brought about by rising costs. According to data released on Thursday, non-agricultural productivity increased by 1.4% on an annualized basis in the second quarter, higher than the 0.8% increase in the first quarter after an upgrade. This result also surpassed the market's general forecast. Unit labor costs, on the other hand, rose 1.3%, lower than expected. Federal Reserve officials, investors, and economists are looking for signs to determine whether hundreds of billions of dollars in artificial intelligence investments are boosting labor productivity. However, due to large quarterly fluctuations in official data, it will take time to observe clear trends. Labor costs are one of many companies' biggest expenses, and improving efficiency can raise wages without driving up inflation. In the long run, increasing productivity will help improve living standards, but some economists worry that if the productivity growth brought about by AI continues, some companies may delay hiring or even cut employees. Productivity growth in the second quarter was due to the strongest increase in output since the third quarter of 2025, while the increase in employee working hours was moderate.