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The U.S. economy has surged ahead under the leadership of President Donald Trump and his administration, soaring by 4.9 percent in labor productivity in the third quarter of 2025, according to a new report from the U.S. Labor Department.
This also comes amid a 5.4 percent uptick in hourly productivity by American workers, the report found.
Labor costs additionally dropped by 1.9 percent and hourly compensation increased by 2.9 percent.
According to an analysis by CNBC’s Rick Santelli, the 4.9 percent increase in labor productivity is the highest spike in nearly six years. He called this a “really solid number” and noted that a drop in labor costs was “always good news.”
Labor costs were broadly expected to rise, so this drop seems to have come as a surprise to some analysts.
“The latest figures suggest firms are successfully doing more with less labor, giving more credence to a jobless expansion,” said Matthew Martin, Senior US Economist at Oxford Economics, via RTT News. He argued that, amid increased labor productivity, “workers lost leverage seeking higher wages amid a weak hiring environment.”
Regardless, the good news on labor productivity is a big win for the Trump administration as the new year kicks off. Just a few weeks ago, the president ended 2025 with favorable winds on the GDP front: 4.3 percent growth in the third quarter of the year, blowing past experts’ predictions.
“The SUCCESS is due to Good Government, and TARIFFS,” the president said in a December statement. “Consumer spending is STRONG, Net Exports are WAY UP, Imports and Trade Deficits are WAY DOWN, and there is NO INFLATION! Consumer spending is STRONG, Net Exports are WAY UP, Imports and Trade Deficits are WAY DOWN, and there is NO INFLATION!”
He additionally called for a cut in interest rates as the economy rises. “…The United States should be rewarded for SUCCESS, not brought down by it. Anybody that disagrees with me will never be the Fed Chairman!” he said.
