Definition
How much is produced for each hour worked.
The story
If a factory makes more goods with the same hours of work, perhaps thanks to better machines or software, productivity is rising. The BLS (Bureau of Labor Statistics) publishes it every quarter. Faster productivity growth lets wages rise without pushing up prices as much.
Why markets watch it
It's at the heart of the debate over whether AI (artificial intelligence) spending will pay off for the economy.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms