Daily Management Review

USA sees productivity boom after COVID-19 pandemic


The coronavirus pandemic has caused a "productivity boom" in the United States. Fewer workers are producing more output than they did before the pandemic. If this trend holds, the economy will see big changes in the next decade, according to The New York Times.

Thomas Hawk via flickr
Thomas Hawk via flickr
Productivity in the United States has grown slowly over the past 15 years. However, the current data show that the pandemic has triggered an improvement, and the country has benefited. Since the start of the second quarter of 2020, labor productivity - the amount of output per hour worked - has grown at an annualized rate of 3.8 percent, up from 1.4 percent from 2005 to 2019.
New figures released Tuesday, Aug. 10, showed that trend continued in the spring of 2021, with an annual productivity growth rate of 2.3 percent in the second quarter.
Several other indicators deserve separate attention. This spring, the state GDP has recovered and even slightly surpassed pre-demic levels, even though the U.S. economy had been in a recessionary peak the year before. In addition, output in the second quarter was 0.8 percent higher than it was before the coronavirus, and the number of jobs fell 4.4 percent over the same period. The increase in GDP with a shrinking labor force in the market was made possible precisely by productivity gains.
The U.S. economy is now successfully recovering from the recent crisis, despite record high inflation and low interest rates. Experts believe that this is an achievement of the Federal Reserve System, which has allocated huge sums for the development of the state economy.
source: nytimes.com