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 12:36\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":225941,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[345,118245,118240,343,44444,344,7282,114,3296,123682,6650,118954,1259,16770,2793,184,1499,4375,3065,123679,1756,27750,122,11161,123684,4200,85,911,123683,7602,4141,117134,1981,9445,46,1659,123680,3961,117151,123681,1359,545,2296,117152,6674,27747,28555,1686,123685,43582,544,92545,21741,931,19806,2958,1264,4377],"class_list":["post-225940","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-il","tag-information-technology","tag-interestrates","tag-invest","tag-investing","tag-investing-securities","tag-investment","tag-investor","tag-israel","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\/il\/wp-json\/wp\/v2\/posts\/225940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=225940"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/225940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/225941"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=225940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=225940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=225940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}