Labor productivity growth in the United States, Canada, and advanced economies in Western Europe and Asia, has been dismal for almost a generation, hovering around 1% a year. Is this lackluster performance all we can expect for the next generation?
It doesn’t have to be. In fact, to deal with rising inflation, wobbly balance sheets, aging populations, and the net-zero transition, it is urgent to do better. Recent research by the McKinsey Global Institute (MGI) argues that by doing two things—boosting investment and accelerating a broader digital transition—current drags on productivity growth can be removed.
