After analyzing technological change over recessions and across OECD countries, economists find that it wasn't at fault for sluggish employment growth in the United States post-Great Recession, writes John Wu in Innovation Files.

Fact of the Week: Automation Is Not the Culprit Behind Sluggish Employment Growth in the Years Following the Great Recession

In 2014, other OECD countries invested 0.6 percent of their GDPs on active labor market policies, while the United States invested just 0.1 percent of its GDP. Moreover, the United States now invests less than half of what it did 30 years ago on such programs as a share of GDP, writes Stephen Ezell in Innovation Files.

Fact of the Week: Other OECD Nations Invest Six Times More Than the U.S. on Active Labor Market Policies Such as Workforce Training and Skills Development

The OECD now expects global GDP to grow by 3.1 percent this year, reduced from the previous projection of 3.3 percent in light of heightened trade barriers and political uncertainty.

Fact of the Week: Analysts Have Downgraded Global GDP Growth Projections for 2025 to 3.1 Percent

If policymakers fail to prioritize investments into STEM-oriented human capital alongside investments in ICT, then productivity growth will stagnate and countries won’t receive the full economic benefits that ICT has to offer.

Fact of the Week: A 10-Point Increase in a Firm’s Share of High-Skilled Workers Correlates With a 2% Productivity Increase for Knowledge-Intensive Services and a 7% Increase for Other Services

Emerging technologies promise to bring about a new production revolution that will increase welfare throughout society, but it is expected to have the largest impact on low-productivity jobs. This could increase the proportion of high-paying and high-productivity jobs, but it also threatens a larger disruption to society, as lower-skill workers have more difficulties changing industries.

Fact of the Week: 72 Percent of Jobs Created in the U.S. from 2010 to 2016 Were Below Average in Both Compensation and Productivity

Labor productivity growth during the U.K.'s Industrial Revolution averaged below 0.4 percent from 1770 to 1830, and only gradually increased to about 0.8 percent in 1860.

Fact of the Week: Labor Productivity Grew Less Than 0.4 Percent Annually During the Industrial Revolution in the United Kingdom

Between 2022 and 2023, R&D investment in Organization for Economic Cooperation and Development (OECD) nations grew by 2.4 percent, a slowdown from the 3.6 percent growth the previous year.

Fact of the Week: R&D Investment Is Slowing in OECD Countries, From 3.6 Percent to 2.4 Percent

Recessions typically have a selective impact on firm redevelopment, with high-productivity businesses withstanding downturns better and consequently capturing larger shares of workers.

Fact of the Week: Despite Broad Business-Preservation Policies, COVID-19 Spurred Labor Reallocations That Have Raised Productivity

The conflict in the Middle East, which has blocked shipments through the Strait of Hormuz and led to the destruction of energy infrastructure throughout the region, has increased the cost of commodities such as oil, gas, and fertilizer. This price shock has affected the entire world, raising the cost of food, energy, and transportation.

Fact of the Week: The Working-Age Population in the OECD Will Decline by 8 Percent by 2060

Related

Fact of the Week: Automation Is Not the Culprit Behind Sluggish Employment Growth in the Years Following the Great Recession

Fact of the Week: Other OECD Nations Invest Six Times More Than the U.S. on Active Labor Market Policies Such as Workforce Training and Skills Development

Fact of the Week: Analysts Have Downgraded Global GDP Growth Projections for 2025 to 3.1 Percent