U.S. productivity drops to three-decade low

(Image credit: Bill Pugliano/Getty Images)

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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Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.