Summary
U.S. workers boosted labor productivity at an annualized 4.9% in Q3 2025, the fastest pace in two years, yet inflation-adjusted hourly wages fell 0.2%, leaving workers producing more without earning real gains. Economists view rising productivity as potentially beneficial for long-term living standards, enabling wage growth without fueling inflation, and technological advances such as AI could contribute to greater efficiency. However, wage gains lag far behind productivity gains, raising concerns that economic growth benefits firms more than employees and may signal a “jobless expansion.” Forecasters also caution that the recent surge in productivity may not be sustainable.
Investopedia
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