Labor Productivity in a Pandemic

Fernald, John G.; Li, Huiyu; Ochse, Mitchell

Journal Article

Labor Productivity in a Pandemic

Abstract: U.S. labor productivity has grown quickly during the pandemic compared with the past decade. However, this rapid pace is unlikely to be sustained. Similar to the Great Recession, the primary reasons for strong productivity growth now are cyclical effects that are likely to unwind as the economy continues to recover. For example, the number of workers has fallen, so capital per worker has risen—raising labor productivity in the short term. What effect the pandemic itself might have on productivity remains uncertain.

Keywords: labor productivity; pandemic; covid-19;