They’re saying Unit labor costs fell 1.9% and are calling it a productivity increase, however, could it be the case that labor costs going down are due to a deterioration of the labor market and declining salaries not more things actually being produced?

Is this a good thing or a bad thing?

Snippet from linkedin:

U.S. labor productivity jumped in the third quarter of 2025 at its fastest clip in two years. Productivity — how much workers produce per hour — rose at a 4.9% annualized rate, according to Bureau of Labor Statistics data released Thursday. Unit labor costs fell 1.9%, the first back-to-back quarterly decline since 2019. The drop offers reassurance to Federal Reserve officials that labor expenses aren't driving inflation above target. Economists say spending on artificial intelligence and incentives for capital spending could continue to boost productivity.