US productivity growth at 2.3% in past two years, strong labor market and business formation

From Investing.com: 2024-12-06

Recent analysis on Bloomberg highlighted the impressive gains in US productivity, with labor productivity growing at 2.3% in the past two years, outpacing the rate before the pandemic. This increase could significantly impact the time it takes to double real GDP. The surge in business formation since the pandemic has been a key factor in boosting productivity, with new businesses emerging and contributing to a more dynamic economy. The strong labor market during the recovery has also played a role, as workers find better-suited jobs, enhancing productivity. However, policymakers must remain vigilant to sustain this progress and prevent any decline in dynamism that could hinder growth.

Read more at Investing.com: Why Is Economic Growth So Good and How Do We Keep it Going?