Unit labor costs in the US nonfarm business sector increased 1.0 percent in the second quarter of 2025, lower than preliminary estimates of 1.6 percent. It reflects a 4.3 percent increase in hourly compensation and a 3.3 percent increase in productivity. Unit labor costs increased 2.5 percent over the last four quarters. Meanwhile, unit labor costs in the total manufacturing sector increased 2.0 percent, reflecting a 4.5 percent increase in hourly compensation and a 2.5 percent increase in productivity. Manufacturing unit labor costs increased 2.6 percent from the same quarter a year ago.