Outside the BoxAI-driven productivity gains are hindering the Fed\u2019s effort to juice the labor market<\/p>\n
Last Updated: Jan. 7, 2026 at 5:00\u202fp.m. ET
First Published: Jan. 7, 2026 at 10:24\u202fa.m. ET<\/p>\n
The artificial intelligence-led boom in U.S. productivity is making it harder for the Federal Reserve to breathe life into a languishing labor market. <\/p>\n
Fresh economic data slated for release Thursday is expected to show that U.S. nonfarm productivity \u2014 measured by dividing output by the number of hours worked \u2014 rose at a 4.74% annualized rate in the third quarter of 2025, up from the previously reported 3.29% increase. If those estimates hold, it will be the highest level since the third quarter of 2020, when economic reopening from the pandemic sent workers rushing back and boosted productivity to 6.58%.<\/p>\n","protected":false},"excerpt":{"rendered":"Outside the BoxAI-driven productivity gains are hindering the Fed\u2019s effort to juice the labor market Last Updated: Jan.…\n","protected":false},"author":2,"featured_media":233116,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[220,113584,113578,218,44772,219,11219,72,2896,119019,11919,113344,739,2418,30849,113,12553,2225,600,119016,1446,16615,1595,14729,52035,5959,61,1940,119020,11393,1831,112561,975,1942,60,737,119017,1630,85513,119018,3045,387,5452,85515,13943,58444,30143,1820,119021,113585,4269,113577,23862,4996,16614,2237,1962,8829],"class_list":{"0":"post-233115","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-ai","9":"tag-analyst-comment","10":"tag-analyst-comment-recommendation","11":"tag-artificial-intelligence","12":"tag-artificial-intelligence-machine-learning","13":"tag-artificialintelligence","14":"tag-boss","15":"tag-business","16":"tag-capital","17":"tag-centralbank","18":"tag-commentary","19":"tag-commentary-opinion","20":"tag-company","21":"tag-economic","22":"tag-economic-news","23":"tag-economy","24":"tag-employee","25":"tag-employer","26":"tag-fed","27":"tag-federalreserve","28":"tag-funding","29":"tag-gcapi","30":"tag-general-news","31":"tag-government-policy","32":"tag-hire","33":"tag-hiring","34":"tag-ie","35":"tag-information-technology","36":"tag-interestrates","37":"tag-invest","38":"tag-investing","39":"tag-investing-securities","40":"tag-investment","41":"tag-investor","42":"tag-ireland","43":"tag-job","44":"tag-jobmarket","45":"tag-labor","46":"tag-labor-personnel-issues","47":"tag-labormarket","48":"tag-machine-learning","49":"tag-opinion","50":"tag-personal-technology","51":"tag-personnel-issues","52":"tag-political","53":"tag-political-general-news","54":"tag-powell","55":"tag-productivity","56":"tag-ratecuts","57":"tag-recommendation","58":"tag-regulation","59":"tag-regulation-government-policy","60":"tag-securities","61":"tag-spending","62":"tag-synd","63":"tag-unemployment","64":"tag-work","65":"tag-worker"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/233115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=233115"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/233115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/233116"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=233115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=233115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=233115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}