Worker productivity saw a significant acceleration in the second quarter, outpacing expectations and helping to curb labor cost gains. Initial unemployment claims saw a slight uptick, but overall layoffs dropped to a two-year low in July, indicating a stable labor market. Economists suggest that the adoption of artificial intelligence may be contributing to this productivity surge. Despite these positive signs, the Federal Reserve may still consider interest rate hikes next month if inflation does not improve. The data suggests that AI buildout has not yet led to widespread job losses.
Washington
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