Unit labor costs in the US nonfarm business sector rose by 1.3% in Q2 2026, matching the revised Q1 pace, but missing market forecasts of 2.1%, preliminary data showed. This mainly reflected a 2.7% increase in hourly compensation and a 1.4% increase in productivity. In the manufacturing sector, unit labor costs were unchanged, as a 1.9% increase in hourly compensation was offset by a 1.9% increase in productivity. On an annual basis, nonfarm labor costs rose by 1.4%, while manufacturing unit labor costs advanced 3.5%.