34Received 26.02.2026. Revised 19.03.2026. Accepted 29.04.2026.
Abstract. This paper examines the long-term evolution of labor productivity in the United States, emphasizing the interaction between structural transformation, the expansion of information and communication technologies (ICT), and labor reallocation mechanisms. The analysis uses sectoral productivity indicators and measures of ICT intensity, as well as two complementary methods for identifying allocation effects: The Lilien dispersion index and the OECD’s decomposition of aggregate productivity growth. The results suggest that the period since 2008 has been characterised by a sustained slowdown in productivity growth, particularly in manufacturing, where progress has largely stalled. At the aggregate level, however, the economy has maintained more stable dynamics comparatively due to the ICT services sector’s compensating contribution. This sector has become the primary driver of productivity improvements by supporting technology diffusion and mitigating the decline in more traditional industries. The study also reveals a growing geographic concentration of ICT-related investments, with a significant proportion of projects located within a single state. This pattern raises concerns about localised overheating, exposure to regional infrastructure constraints, and the heightened vulnerability of the technological ecosystem. Furthermore, the notion that high-productivity sectors shrink in relative importance over time is not confirmed for the United States, where their GDP share has generally increased, albeit moderately. A continued shift towards services, accompanied by a declining share of labor costs in output, points to deeper structural changes driven by capital- and technology-intensive modes of production. Evidence from both the Lilien index and the OECD framework shows that intersectoral labor reallocation becomes particularly significant during economic downturns. The exceptional nature of the employment growth dispersion and substantial short-term shifts in hours worked across industries during the COVID‑19 crisis highlights the cyclical and multifaceted character of U.S. productivity dynamics.
Keywords: US economy, labor productivity, total factor productivity, allocation effects, manufacturing industry, information and communication technologies, employment, inter-industry distribution of labor
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