US Productivity Surges 2.7% in 2025 as AI Drives Growth Despite 403,000 Job Revision Downward
Summary
US productivity surges 2.7% in 2025, nearly doubling the past decade's average, as artificial intelligence drives economic growth while employers cut 403,000 jobs from payrolls despite maintaining robust 3.7% GDP growth.
Key Points
- US productivity increases by approximately 2.7% for 2025, nearly doubling from the sluggish 1.4% annual average of the past decade
- Labor payroll growth gets revised downward by 403,000 jobs while real GDP remains robust with 3.7% fourth quarter growth
- This decoupling of maintaining high output with lower labor input represents the hallmark of productivity growth potentially driven by AI and technology adoption