US productivity jumps 2.8% in Q4 2025
Business
US worker productivity grew by 2.8% in late 2025—a noticeable drop from the previous quarter's rapid 5.2% surge.
The boost coincided with higher output, even though people worked slightly fewer hours.
This shift follows a year where tech, especially AI, was cited as helping businesses do more with less.
Job growth lagged last year
Despite all that extra output, job growth lagged last year.
At the same time, labor costs ticked up by 2.8%, flipping last quarter's decline.
Implications for the economy and future of work
This trend points to an economy where AI and policy changes mean companies can grow without hiring much—good for efficiency but not so great if you're job-hunting.
It also shapes how the Federal Reserve thinks about interest rates and hints at what work might look like in the near future.