U.S. labor productivity rose more than expected in the fourth quarter of 2025, further demonstrating that businesses are striving to improve efficiency to control costs. Data released Thursday by the Bureau of Labor Statistics showed that productivity (non-farm output per hour) grew at an annualized rate of 2.8% in the fourth quarter, following an upward revision to 5.2% growth in the third quarter. The median forecast from economists surveyed was 1.9%. This recent trend in productivity helps ensure that wage pressures are under control and confirms the view of Federal Reserve officials that the labor market is no longer a source of inflation. Labor costs are the largest expense for many businesses, so companies are turning to new technologies and equipment to improve employee efficiency. Business investment in technologies such as artificial intelligence (AI) has enabled some companies to operate with leaner workforces, contributing to last year's hiring slump. With AI investment continuing to rise, economists generally expect efficiency to continue to improve this year. (Jinshi)