It’s not the stock market, inflation, or even unemployment that best reveals the strength of the economy — it’s productivity. And right now, that number is quietly improving, offering hope for higher living standards across the U.S.
According to the Bureau of Labor Statistics, non-farm worker output per hour rose at a 2.4% annual rate in the second quarter of 2025. That’s a solid rebound from a 1.8% dip in the first quarter and higher than the long-term average of 2.1%. While the percentage may seem small, it represents a major shift: Americans are creating more value in fewer hours, the very fuel that drives economic growth and higher wages over time.
Economists point to three major forces behind the boost. Automation has been a game-changer, with companies like Amazon deploying robots nearly equal in number to human workers, and even restaurants like Chipotle experimenting with avocado-peeling machines. Remote work is also playing a role, keeping more people productive from home, though experts caution that younger workers may lose valuable on-the-job mentoring. Meanwhile, a wave of entrepreneurship sparked during the pandemic continues, as millions of Americans launch businesses, fueling innovation and competition.
The long-term picture is remarkable. The U.S. economy now produces 4.5 times more goods and services per person than in 1947, while the average workweek has actually shrunk. That’s the magic of productivity: more output with less effort.
Still, not everyone is optimistic. Wells Fargo economists expect above-average growth ahead, but the Congressional Budget Office projects a slower 1.4% rate through 2035. Policies like tariffs and tighter immigration may weigh on innovation and skilled labor supply.
For now, though, America’s productivity engine is running strong — and that’s good news for workers, businesses, and households alike.
