In the first quarter, economic output was 3.2% higher than a year earlier, resulting in a 2.9% gain in labor productivity, the best in almost 10 years.
Productivity gains have been attributed to a mindset shift towards efficiency within firms and industry reallocations, according to Federal Reserve Bank president Susan Collins.
Collins mentioned that the surge in new business formations could further contribute to productivity growth, alongside potential future benefits from artificial intelligence.
#labor-productivity #economic-output #productivity-gains #business-formations #industry-reallocation
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