AI Summary
5 min readLabor productivity in the US rose 0.8 percent in the first quarter, extending a growth streak now up nearly 3 percent from a year ago, according to Bureau of Labor Statistics data. The Marketplace Morning Report covers this alongside President Trump's tariff threats against the EU and strains in petrodollar recycling amid low oil sales by Gulf states.
Recent Productivity Gains
Labor productivity—output per hour worked—has climbed steadily for about 18 months. The latest quarterly increase of 0.8 percent builds on prior gains, lifting the year-over-year figure to almost 3 percent. KPMG chief economist Diane Swonk notes it's too early to credit AI adoption directly, but anticipation of AI's disruptions is pushing companies to squeeze more from existing staff. Firms are curtailing hiring or making cuts to fund AI investments, prompting workers to handle heavier loads. This "do more with less" approach raises concerns, as it may overburden remaining employees rather than fostering broad-based efficiency.
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What you'll learn
- 1 (01:16) **Labor Productivity Growth** - Host introduces US labor productivity up 0.8% in Q1 and nearly 3% year-over-year
- 2 (01:42) **Diane Swonk Interview Begins** - KPMG chief economist discusses productivity upswing
- 3 (02:12) **AI Fears and Hiring Caution** - Firms cut hiring to fund AI investments amid business model risks
- 4 (02:55) **Manufacturing Productivity Lag** - Sector back to 2020-2021 levels after pandemic setbacks
- 5 (03:42) **Productivity Gains and Inequality** - Post-2000 gains favor capital owners over workers' wages
- 6 (04:06) **Trump's EU Tariff Threats** - President threatens 25% tariffs on EU cars and trucks
- 7 (04:42) **EU Negotiations Update** - Lawmakers push for US tax cuts; next talks May 19th
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Show Notes
Labor productivity has been on a growth streak for the past year and a half. It increased 0.8% in the first quarter of this year, according to the Bureau of Labor Statistics, and is up almost 3% from a year ago. How much of this boils down to AI? Also on the show: threatened tariffs against the European Union and a conversation about U.S. dollars, the oil shock, and investment from Gulf countries.
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