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":["post-233115","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-ai","tag-analyst-comment","tag-analyst-comment-recommendation","tag-artificial-intelligence","tag-artificial-intelligence-machine-learning","tag-artificialintelligence","tag-boss","tag-business","tag-capital","tag-centralbank","tag-commentary","tag-commentary-opinion","tag-company","tag-economic","tag-economic-news","tag-economy","tag-employee","tag-employer","tag-fed","tag-federalreserve","tag-funding","tag-gcapi","tag-general-news","tag-government-policy","tag-hire","tag-hiring","tag-ie","tag-information-technology","tag-interestrates","tag-invest","tag-investing","tag-investing-securities","tag-investment","tag-investor","tag-ireland","tag-job","tag-jobmarket","tag-labor","tag-labor-personnel-issues","tag-labormarket","tag-machine-learning","tag-opinion","tag-personal-technology","tag-personnel-issues","tag-political","tag-political-general-news","tag-powell","tag-productivity","tag-ratecuts","tag-recommendation","tag-regulation","tag-regulation-government-policy","tag-securities","tag-spending","tag-synd","tag-unemployment","tag-work","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}]}}