in

The importance of US productivity for the economy

Harmony Internal - McKinsey

Share this email

AN ARTICLE A DAY, PICKED BY OUR EDITORS

Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities

Productivity growth in the US is declining—and this is a missed opportunity worth $10 trillion. Labor productivity, or the economic output per hour worked, is essential to addressing the major challenges we face today including workforce shortages, debt, inflation, and the cost of the energy transition. What can be done to boost US productivity, which has been growing at a mere 1.4 percent since 2005? In a new article from the McKinsey Global Institute, McKinsey’s Kweilin Ellingrud , Asutosh Padhi , Olivia White , and their coauthors explore the productivity challenges facing the US and other countries, and suggest action items business leaders and policy makers can take to return labor productivity growth to its historical level.

Two production operators with tablet in factory shop floor

Rekindling US productivity for a new era

Regaining historical rates of productivity growth would add $10 trillion to US GDP—a boost needed to confront workforce shortages, debt, inflation, and the energy transition.

Download the full report

Quote of the day

“I think this next era will be, hopefully, an exciting one if we can shape it in an inclusive way. But it will certainly be a different one than we’ve had over the last few decades.”

—McKinsey senior partner Kweilin Ellingrud on key takeaways from Davos 2023 in “Resilience in crisis: Perspectives from Davos”

Chart of the day

Chart of delivery costs per mile by vehicle

See today’s chart

ALSO NEW

— Edited by Joyce Yoo, editor, New York

Follow our thinking

Share these insights

Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.

This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy.

You received this email because you subscribed to the Daily Read newsletter.

Manage subscriptions | Unsubscribe

by "McKinsey Daily Read" <publishing@email.mckinsey.com> - 06:18 - 16 Feb 2023

Archives

in

info@learn.odoo.com

[White Paper] Why Distributed Tracing is Essential for APM

Think outside the office: Harnessing nature to boost creativity and performance

The importance of US productivity for the economy

Rekindling US productivity for a new era

“I think this next era will be, hopefully, an exciting one if we can shape it in an inclusive way. But it will certainly be a different one than we’ve had over the last few decades.”

Author Talks: Think you’re foolproof? It could be hurting your decision-making

Taking off: Scaling complex manufacturing in the aerospace industry

Agtech: Breaking down the farmer adoption dilemma