After 15 years of stagnation, Bank of America found that S&P 500 companies' average revenue per worker reached a record high in February
After falling in 2022, labor productivity is rising in numerous ways.
In recent weeks, Wall Street has worried about inflation, but worker productivity may help the stock market endure.
"If productivity goes up, [companies] can cut costs, improve margins, etc.," Yahoo Finance quoted Bank of America US and Canada equity strategist Ohsung Kwon.
"That's why firms prioritize productivity. There are many macro headwinds. So they're attempting to boost productivity to counteract those headwinds.
Kwon mentions the chance the Federal Reserve delays decreasing interest rates as inflation continues to fall faster than expected.
Two reports this week indicated February inflation was higher than economists predicted.
The month's annual wage increase was more than economists expect the Fed to see to ensure inflation is falling to 2%.