Industries with low productivity growth slowing down U.S. economy growth
Unbalanced growth slowdown is when the overall productivity growth decreases because more economic activity is moving to industries with low productivity growth. A new model shows that this slowdown has significantly impacted past U.S. productivity growth and will continue to do so in the future. Surprisingly, the model predicts that future reductions in productivity growth will be limited because the industries with low growth rates do not become dominant in the economy.