The Productivity Drop What S Causing It Keenalignment

Leo Migdal

-Dec 6, 2025, 8:36 PM

the productivity drop what s causing it keenalignment

Productivity in the workplace has been dropping sharply in recent years. Why is this occurring and how can we fix it? Workplace productivity in 2022 reached its lowest point in 75 years according to the U.S. Bureau of Labor Statistics. This has sparked many discussions and investigations into the causes behind this sharp decline. According to Julia Pollack, chief economist with ZipRecruiter, frustration, boredom/dissatisfaction, and burnout at work are among the various factors causing productivity levels to plummet.

Major world events (i.e. a global pandemic), generational differences, and constant changes or lack of clarity in the workplace are also contributing to this problem. After Covid-19 hit, there was a persistent struggle to balance remote work, childcare, and other pandemic-related stressors. Uncertainty about job security and the future also fueled frustration and anxiety. This led to widespread burnout among employees that has only worsened as we have tried to return to a semblance of normalcy. The pandemic forced most businesses to adapt rapidly, often with limited clarity on the way forward.

Frequent changes in work processes, expectations, and goals have become commonplace, further impacting stress levels and burnout among employees. When employees are unsure what is expected of them or how their work contributes to the organization's noble cause, it can lead to confusion, inefficiency, and resentment. To remedy this, it is important to ensure that job roles and responsibilities are clearly defined. Regularly communicate organizational goals and how individual contributions align with these objectives. Encourage open dialogue to address any ambiguities or concerns. Doing this will increase employee engagement, thus increasing their levels of productivity.

Gone are the days when people worked until they couldn’t. While many business principles stay the same, the composition and mindset of the workforce are evolving rapidly—and so are the productivity risks. A quiet exit is happening across workplaces. According to a recent Gallup report, employees have been steadily working fewer hours over the past five years—dropping from an average of 44.1 hours in 2019 to 42.9 in 2024. There’s a generational divide: workers under 35 have reduced their hours by nearly two, while 35-and-over workers have cut just under one. That equates to a full workweek lost per year for 35-and-over employees and two for employees under 35.

On the surface, the difference may appear small. But across an organization, this shift—if left unaddressed—can compound into significant productivity and engagement issues. This productivity dip isn’t just about time on the clock—it’s part of a broader transformation in workforce values and well-being. At the heart of the issue is burnout, which is costing companies millions annually. But it's not just physical exhaustion—it's often mental, emotional, and spiritual depletion that eventually manifests itself in physical decline. Employee engagement is also dropping.

In 2024, engagement levels dropped to their lowest point in a decade, with only 31% of workers actively engaged, according to another Gallup report. Workers under 35—again, the same group working fewer hours and experiencing deeper productivity losses, were the most affected. As values and priorities shift, younger generations want more meaning, alignment, and employer support. Salary matters, but it's not enough. Without a sense of purpose and connection, disengagement sets in. As the mental and emotional toll of work increases across all levels, including the C-suite, leaders must rethink how they define and implement wellness.

Focusing on physical health isn't sufficient. What's needed now is a plan that genuinely encompasses mental and emotional well-being. It's about building a culture to support optimal energy management, psychological safety, and sustainable performance. Productivity is tied to worker wages, so a drop can be cause for concern. Labor productivity in the U.S. dropped in the first quarter of this year, according to new data from the Bureau of Labor Statistics.

Productivity, of course, refers to how many goods and services the average worker produces per hour. And it’s important — economists tell us — because when workers are more productive, that often means their wages rise. So how concerned should we be about the recent drop in productivity? Productivity had previously been on something of a hot streak. For years, workers had been producing more and more — until now. 📉 Workplace productivity reached its lowest point in 75 years in 2022!

😱 Let's delve into the reasons behind this decline and explore effective solutions. From bridging generational gaps to fostering autonomy and eliminating micromanagement, there's much to discuss. Dive into our in-depth blog post for a comprehensive look at these issues and how you can make a positive change in your organization! Read the full blog here ➡️ https://lnkd.in/gU5D86Fv The U.S. Bureau of Labor Statistics reports that worker productivity decreased nearly three percent in the first quarter of 2023—the sharpest decline in 75 years.

What’s behind this sudden drop? There are several theories, and despite popular opinion, remote work might not be the sole culprit. In this week’s blog, we explore the potential causes of low productivity in the workplace right now and what employers can do to reverse the trend. The pandemic and shift to remote work; the Great Resignation; and “quiet quitting” are just a few of the monumental changes that have unsettled workplaces and upended traditional norms. In the early days of the pandemic, worker productivity actually increased in spite of these shifts. McKinsey attributes the rise in productivity to the “bold and innovative response” many firms took, including rapidly shifting to online channels, automating production tasks, increasing operational efficiency and faster decision-making.

Some have cast blame on remote work, claiming that remote workers are less productive and more prone to distractions at home. Yet research has found that remote workers are actually 13% more productive than their in-office counterparts, less likely to take sick days and more likely to be satisfied with their jobs. Certainly, more research needs to be conducted to determine the full impact of remote work on productivity. What is abundantly clear, however, is that there is a huge disconnect in the way employees feel about remote work and how managers view it: employees feel they are much more productive working remotely,... Product Marketing | PMI Agile | SAFe Agilist certified Having low productivity in the workplace is a widespread issue.

Researches show that employees are only 60% as productive in their workplaces as they could be. This shortfall in performance prevents companies from meeting consumer needs effectively, resulting in annual financial losses amounting to billions of dollars. Indeed, a Gallup study on global workplace engagement for the year 2022 estimates that poor employee engagement costs the global economy approximately $8.8 trillion, or 9% of the worldwide GDP. So, why is this happening? In this article, we'll identify nine critical factors that always cause low productivity. If you go online and check whether multitasking is good or bad, I am sure that you will find a plethora of sources, each one of them telling you a different thing.

However, we at Businessmap are firm believers in not multitasking. As "the father of modern management" has brilliantly put it: "Concentration is the key to economic results. No other principles of effectiveness is violated as constantly today as the basic principle of concentration." (Peter Drucker) Many studies attribute staggering data to this fact. Despite committed teams, innovative tools and ample resources, maximizing employee productivity isn’t always easy. In fact, the loss of productivity can often feel like an avalanche that starts with a few disengaged employees and snowballs into a lack of innovation and inspiration organization-wide. As an enterprise leader, you know reduced productivity has dire consequences for individual organizations and the economy as a whole.

Addressing productivity declines starts with understanding why they occur. Organizations can measure productivity at all levels, including at the individual and enterprise levels. According to North Carolina State University, worker productivity declined by 2% between mid-2021 and mid-2023. In the wake of the COVID-19 pandemic, many employees changed their work habits, leading to lower levels of output. For example, some people sought flexible work arrangements to improve their work-life balance. Productivity at the enterprise level has also declined, a troubling sign for the U.S.

economy. The Bureau of Labor Statistics reports that total factor productivity only increased by 1.3% in 2023. Additionally, the United States had five consecutive quarters of year-over-year productivity declines at that time — something that hadn’t happened since the BLS started tracking productivity data in 1948. If you’re not already tracking productivity, you should be. One of the best ways to do so is by dividing units of output by units of input (capital, labor or materials). Use the same formula every quarter or every month to determine whether company productivity is increasing, decreasing or staying the same.

Worker productivity is declining at the fastest rate in over 40 years, and it’s causing concern across industries. In a recent article, CNBC explores the factors behind this surprising trend and what organizations can do to reverse it. Curious about why productivity is dropping and how to turn things around? Here’s what you need to know. The decline in worker productivity is a complex issue, but it’s not without solutions. By understanding the contributing factors and proactively addressing them—through improved communication, better engagement strategies, reimagined work environments, and thoughtful use of technology—organizations can turn the tide and create more productive, fulfilling workplaces.

At XAPA World we recognize that productivity thrives in environments where employees feel valued, supported, and empowered. We are committed to creating innovative solutions and cultivating a culture where every individual can perform at their best and contribute meaningfully to their teams.

The Productivity Drop What S Causing It Keenalignment

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