The evidence keeps pointing to high employment rates aiding productivity growth. We now have three distinct episodes in which productivity growth outperformed in the past 40 years for reasons other than aggregate job loss: the late 1990s, 2019, and 2023. What do those periods have in common? The Prime-Age 25-54 Employment Rate was elevated and above 80%, such that labor market was in a more mature state and job and hours growth was primed to endogenously cool. Productivity growth is a multi-causal phenomenon, but recent history suggests that getting to elevated levels of prime-age employment raises the odds of achieving impressive growth outcomes. In a univariate linear specification that excludes recession-distorted observations, 1% higher on the Prime-Age Employment Rate translates into an additional 0.3% of productivity growth.
- Date Posted:
- January 30, 2024
Global spending on the clean-energy transition hit record highs as the world moves to rein in climate change, but it’s still not enough to get on track to net-zero emissions. Total spending surged 17% last year to $1.8 trillion, according to a report Tuesday from BloombergNEF. These include investments to install renewable energy, buy electric vehicles, build hydrogen production systems, and deploy other technologies. Add in the investments in building out clean-energy supply chains, as well as $900 billion in financing, and the total funding in 2023 reached about $2.8 trillion.