Are We in a Productivity Boom? Evidence from Multifactor Productivity Growth

With the U.S. unemployment rate at a 30-year historic low and the labor force expected to grow only about 1 percent in the near future, increased productivity could be the key to preserving the country’s robust, noninflationary GDP growth. As a result of compounding, even a small boost in annual productivity growth can yield large benefits in the long run. Providing more goods and services without expending additional resources is a surefire way of relieving supply-side bottlenecks and improving living standards over time.