Marketplace All-in-One Productivity climbs — without hiring to match
Jan 8, 2026
Join Nova Safo, a Marketplace reporter specializing in economics, as she unpacks the recent 4.9% productivity surge and its strange coexistence with a stagnant labor market. Meanwhile, Alexandra Petrai, a Staff writer at The Atlantic, shares her eye-opening experience attempting to perform federal government tasks, highlighting the mental load of public services. They also discuss NYC’s expanded free child care for at-risk areas and the shifting landscape for small businesses during the holiday season.
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Productivity Spike Without Hiring
- Productivity jumped 4.9% annualized in Q3 while hours worked were weak, creating a surprising output-per-worker spike.
- Economists caution the measure is volatile and want consistent gains before calling it a lasting trend.
AI And Productivity Could Affect Rates
- Some analysts see AI-driven automation as an initial driver of productivity gains even while firms stay cautious about hiring.
- If sustained, higher productivity could ease inflation pressures and influence Federal Reserve interest rate decisions.
Journalist Doing Federal Jobs
- Alexandra Petrai tried doing federal work herself after many government staff left, including mowing at Antietam and field data collection for price surveys.
- Her attempts revealed how much effort and expertise federal functions require and how fragile those services are when staff are cut.