Key Points:
Nonfarm business sector labor productivity increased by 2.9% year-on-year in Q1 2026, according to preliminary estimates from the Bureau of Labor Statistics. Output increased 1.5%, and hours worked increased 0.7%. Real hourly compensation increased by 1.4% overall year-on-year, but fell 0.5% from last quarter. Labor share dropped to 54.1%, the lowest since the metric was first measured