Productivity Boom Without Hiring

Since late 2023 the U.S. has seen unusually fast labor productivity growth (≈2.5–3%) while net job creation has stalled. Much of the productivity jump appears linked to heavy investment in data centers, computing equipment, and higher capital utilization rather than broad-based employment gains. — If output growth increasingly comes from capital‑intensive AI infrastructure rather than more workers, policy on retraining, taxation, and industrial planning must shift to address distributional and political consequences.