Productivity Is Key to Our Economic Future
Productivity has surged in the US and UK, with labor productivity growing 4.9% in the US in Q3 2025, and 3.4% in the UK over the last six quarters. This growth is attributed to artificial intelligence and could help offset years of fiscal profligacy.
Productivity has surged in the US and UK. In Q3 2025, US labor productivity grew 4.9%, up from 1.9% a year earlier. The UK's productivity growth was 3.4% over the last six quarters. This growth is attributed to artificial intelligence. Productivity compares the value of goods and services produced with the inputs required. Sustained gains support faster economic growth and higher wages. Rich countries face the challenge of sustaining productivity growth once labor and capital are fully deployed.
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