WEAK WORK

From 2010-2022, total hours worked by US workers grew an average of 1.95%/year, real GDP growth averaged 2.35%/year, and 83% of GDP growth was due to working more. For years 2023-2025, hours worked increased an average of just 0.23%/year and GDP growth averaged 2.61%/year, extra hours boosted GDP by less than 10%. Rising labor productivity was responsible for over 90%. This is deflationary, and just wait for AI’s impact.