U.S. Labor Productivity Climbs at Fastest Pace in 20 Years as AI Plays a Minor Role
Updated
Updated · The New York Times · Jul 14
U.S. Labor Productivity Climbs at Fastest Pace in 20 Years as AI Plays a Minor Role
2 articles · Updated · The New York Times · Jul 14
Summary
U.S. labor productivity has been rising at its fastest pace in at least two decades, with economists seeing the gains as broader and more durable than a short-lived AI bump.
Digitization, remote work and tight labor markets are cited as the main drivers, while generative AI is still viewed as an early, secondary contributor rather than the central force.
Companies are already using cloud systems, digital medical records and wider remote hiring to produce more with the same or fewer hours, supporting revenue and wages without relying on price increases.
Jerome Powell said in March he had not expected so many years of strong productivity growth and added the economy has not yet really begun to show generative AI's effects.