Job Growth May Fizzle in U.S. as Productivity Gains: Economy

The U.S. economy may be on the cusp of a pickup in productivity that will make it more difficult for Federal Reserve policy makers to reduce unemployment.

After cooling throughout last year, worker output per hour will probably rise at around 1.5 percent, in line with its long-run trend, according to economists like Ellen Zentner and Robert Gordon. That means the lower-than-forecast payroll gains in May and April may be closer to the norm than the exception for the rest of the year as companies redouble efforts to improve efficiency.