Research Briefing | Jul 14, 2021

US | Why the Covid-induced productivity gains will stick

 US Why the Covid-induced productivity gains will stick

The Covid crisis has accelerated the US economy’s automation in a way that we think will outlast the pandemic, leading to a sustained acceleration in productivity growth. Industries with traditionally weak productivity and considerable scope to accelerate digitalization stand to benefit the most, but others could also experience reduced labor demand from automation.

What you will learn:

  • Most industries have responded to the pandemic by urgently adopting productivity-enhancing technologies, and we don’t expect firms to abandon these labor-saving tools.
  • We see the shift continuing to leaner and more efficient operations in retail (self-checkouts), healthcare (telemedicine), warehousing (robots), and leisure and hospitality (digitalization).
  • Acute labor supply constraints could entice companies to invest more in labor-saving technologies, especially in low-paid and labor-intensive industries. Our labor mismatch scorecard confirms that industries hit hard by the pandemic, such as leisure and hospitality and manufacturing, are seeing the most severe shortages.

Back to Resource Hub

Related Services

Post

Trump’s tariffs will likely exacerbate the slowbalisation globally.

Donald Trump's victory in the US elections heralds a potential upheaval in global trade. We don't know exactly what tariffs Trump will enact, but his campaign rhetoric and his political appointments so far suggest he will implement significant changes to policy.

Find Out More

Post

China Key Themes 2025: A policy-driven, half-full glass economy

Deflationary risks are the biggest concern for Chinese economy in 2025.

Find Out More