More productive workers are more profitable. So why not hire more of them?
The softening job market and immigration crackdown may be what’s behind the increase.
The Trump administration’s tariffs are raising costs for businesses, reducing the benefits of productivity improvements.
Productivity is tied to worker wages, so a drop can be cause for concern.
Stagnant productivity growth will have implications for inflation, innovation, and standards of living over time.
Labor productivity has been increasing for more than two years, according to the Labor Department.
For one thing, it’s not helpful in the fight against inflation.
The measure fell at the steepest rate in 40 years, but that might not be as ominous as it sounds — if the trend is short term.