US worker productivity grew at its fastest rate in two years, with a 4.9% increase in hourly output per worker in the third quarter. Businesses invested in AI, leading to GDP growth without significant job gains, highlighting a potential economic and social dilemma in the K-shaped economy.

Companies are thriving with increased productivity from AI investments, resulting in a frozen hiring scene and growing concerns over automation. While boosting GDP, these productivity gains could worsen the job market and deepen divisions in the economy, creating challenges for American workers.

Businesses have been motivated by cost savings from AI efficiencies to reduce headcounts and increase profits. Despite expectations that GDP growth will eventually drive job creation, American workers are currently not reaping the benefits. The AI transformation is just beginning, leaving workers behind while companies focus on cost-cutting measures.

Read more at Yahoo Finance: Productivity can be another name for a rough job market