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flag U.S. productivity surged 2.8% in Q4 2025, fueled by tech investments, despite rising labor costs.

flag U.S. labor productivity rose 2.8% in the fourth quarter of 2025, surpassing expectations, though slower than the revised 5.2% gain in the third quarter. flag Output grew 2.6% while hours worked declined slightly. flag Unit labor costs rose 2.8%, above forecasts, driven by a 5.7% jump in hourly pay. flag Productivity growth remains strong year-over-year, with a 2.8% increase and a 2.2% annualized pace since 2019, outpacing prior cycles. flag Economists attribute gains to technology investments, including AI, and expect continued productivity growth in 2026 despite rising labor costs.

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