American worker productivity rose more than expected in the fourth quarter of 2025, capping a year of robust efficiency gains that have confounded critics who predicted that trade and immigration policies would slow the economy.
The Bureau of Labor Statistics reported Thursday that nonfarm business sector labor productivity increased at an annualized rate of 2.8 percent in the fourth quarter, well above the 1.9 percent analysts had forecast. Output rose 2.6 percent while hours worked fell 0.2 percent.
The report also revised the third quarter reading upward, to a 5.2 percent annualized rate from an earlier estimate of 4.9 percent — the…
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