Stagnating service sector productivity threatens U.S. standard of living.
The article discusses why productivity growth has slowed down in the U.S. since the 1970s, despite advances in technology. It focuses on the manufacturing and service sectors and finds that the main reason for the slowdown is stagnant productivity in the service sector. This is worsened by the fact that more people are employed in services compared to manufacturing. The study shows how these sectoral shifts have contributed to the overall decline in productivity growth.