US productivity rises amid cost cuts

Worker productivity in the non-agricultural sectors in the United States increased at an annual rate of 1.4% in the second quarter, surpassing expectations, while unit labor costs decreased by 1.3% as companies worked to cut expenses. Meanwhile, real wages fell by 3.1% during the same period, the steepest decline since the end of 2022, reflecting a balance between increased output and cost reductions. Federal Reserve officials and AI investment stakeholders are closely monitoring workforce efficiency practices and their impact on inflation, amid stable unemployment claims and employment levels.

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