January 29, 2026
Non-farm productivity rose 4.9% in the third quarter after having climbed 4.1% in the .second quarter The third quarter growth rate consisted of a 5.4% increase in output combined with a 0.5% increase in hours worked. Hence, a 4.9% increase in productivity in that quarter. In the past year productivity has risen 1.9%.
This productivity jump shows the power of what, AI can do. It allows firms to boost out-put without have to necessarily boost head count. All of that spending on technology is beginning to pay dividends in the form of faster growth in productivity. We think that is the case and, as a result, we expect productivity growth to continue to climb at a rate far in excess of the 1.2% pace it has registered on average in the past 24 years for sseveral more years to come. We envisio a sustained increase going forward of around 2.5%.
Stephen Slifer
NumberNomics
Charleston, SC
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