The US economy is experiencing remarkable growth, driven by an impressive 2.1% annual productivity increase over the past five years. This trend outpaces peers such as the EU and Canada, where productivity has stagnated.
The pandemic played a pivotal role in this productivity boom, prompting businesses to innovate under government stimulus and low interest rates. The labor market also contributed, with workers seeking higher-responsibility roles leading to wage gains and increased productivity.
Remote work expanded job opportunities, while the US labor system’s flexibility enabled smoother transitions than in other economies. Furthermore, a surge in new business formations has driven efficiency and innovation. This diverse mix of factors positions the US for sustained growth without risking overheating.
Source: https://www.businessreport.com/article/how-the-pandemic-sparked-unprecedented-us-productivity-gains