Jul 20, 2026 · 55 min · 10 segments
This week on Software Sundays, KD breaks down why American workers are becoming more productive, what is actually driving those gains, and why the biggest impact from artificial intelligence may still…
Kevin DowdyHost
So there's a report from the New York Times basically saying that productivity for labor has been increasing for the last six years.

And I do want to just highlight what that productivity means, right? Just so we're on the same page.

So productivity is defined as getting more out of a system over time than you did previously.

So if the output was five of something and you had to put in an input of three, Now, increased productivity would be maybe we put in two and we still get five.

For labor, that looks like a person putting in the same amount of hours or even less hours and getting more value from that employee.

Either that employee selling more units of something, right? If you're in sales and you're getting more sales in the same eight hour day that could be a developer building a feature faster and that could be something like a cyber security analyst catching incidents earlier without putting in more hours or having to do anything extra more work more input or not having more people on the team for you to be able to catch the same amount or more of incidents early.

That's how we're kind of measuring productivity from an output to input to output ratio.

But an important thing to measure and to understand when we're talking about productivity and what this report and article is also mentioning is the quality.

We don't want to give up quality when we're talking about productivity, because just because you do more of something doesn't mean that the thing that you got out of it was actually better.

And a lot of the productivity gains that we're getting are built off of changes and decisions that were made six years ago, 10 years ago, right? The cloud as a technology, as a platform that people build on, remote work as a way for companies to attract more talent or better talent to their companies without having to be in those markets, having offices in those markets and all the other things that might be required previously if you wanted to build a team in a different area.

These changes allow businesses, people in countries to just be more productive with their available resources because they don't have to use as much as they did previously to get the same results.

And with that, one of the best parts about increased productivity is the fact that most times when a business or even a person becomes more productive, whenever they get more energy that they're saving, it's not like they do less.

But one of the most interesting parts about this article for me was that AI is not really a major lever in why we're seeing increased productivity today.

And it goes back to one of the quotes from, I think some economists, basically that productivity gains usually come years after the actual technology and tools that made them possible were released.

And we're seeing a lot of investments of energy, time, and resources into getting AI to be helpful, building out new tools, building out new systems with these additional tools.

So there's a report from the New York Times basically saying that productivity for labor has been increasing for the last six years.

And I do want to just highlight what that productivity means, right? Just so we're on the same page.

So productivity is defined as getting more out of a system over time than you did previously.

So if the output was five of something and you had to put in an input of three, Now, increased productivity would be maybe we put in two and we still get five.

For labor, that looks like a person putting in the same amount of hours or even less hours and getting more value from that employee.

Either that employee selling more units of something, right? If you're in sales and you're getting more sales in the same eight hour day that could be a developer building a feature faster and that could be something like a cyber security analyst catching incidents earlier without putting in more hours or having to do anything extra more work more input or not having more people on the team for you to be able to catch the same amount or more of incidents early.

That's how we're kind of measuring productivity from an output to input to output ratio.

But an important thing to measure and to understand when we're talking about productivity and what this report and article is also mentioning is the quality.

We don't want to give up quality when we're talking about productivity, because just because you do more of something doesn't mean that the thing that you got out of it was actually better.

And a lot of the productivity gains that we're getting are built off of changes and decisions that were made six years ago, 10 years ago, right? The cloud as a technology, as a platform that people build on, remote work as a way for companies to attract more talent or better talent to their companies without having to be in those markets, having offices in those markets and all the other things that might be required previously if you wanted to build a team in a different area.

These changes allow businesses, people in countries to just be more productive with their available resources because they don't have to use as much as they did previously to get the same results.

And with that, one of the best parts about increased productivity is the fact that most times when a business or even a person becomes more productive, whenever they get more energy that they're saving, it's not like they do less.

But one of the most interesting parts about this article for me was that AI is not really a major lever in why we're seeing increased productivity today.

And it goes back to one of the quotes from, I think some economists, basically that productivity gains usually come years after the actual technology and tools that made them possible were released.

And we're seeing a lot of investments of energy, time, and resources into getting AI to be helpful, building out new tools, building out new systems with these additional tools.
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