U.S. productivity is set to drop for the first time in over three decades, the Financial Times reports.
"Last year it looked like we were entering into a productivity crisis: Now we're right in it," think-tank Conference Board's chief economist Bart van Ark said.
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Productivity growth lies at the heart of economic progress. Without an improvement in output for every hour worked, economies can grow only if people work harder and longer or more people find jobs. A downturn in productivity growth in one year does not matter much because economies will go through ups and downs as technology changes, but a persistent decline is a much more serious prospect. [Financial Times]
"Companies really need to invest seriously in innovation. It is time for companies to move on the productivity agenda to turn this story around," van Ark said.
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