The U.S. has now had five consecutive quarters of year-over-year declines in productivity, according to research from EY-Parthenon, using data from the federal Bureau of Labor Statistics. That has never happened before, in data going back to 1948. 

To figure out why this is happening, Fortune spoke with Gregory Daco, chief economist at EY-Parthenon, the economic research arm of one of the Big Four accounting and consulting firms. Daco has written and spoken extensively about remote work and the pandemics effect on the labor market. He said the low productivity reflects our current environment, defined by high inflation. Remote work is a real thing to consider, Daco said, but its not the only factor.

The drop in productivity, Daco tweeted Thursday, is exacerbating compensation pressures and pushing up unit labor costs. The difficulty is that there is no magic productivity wand, he wrote. And cost-cutting via layoffs and wage growth compression is often easier and faster to execute.

Breaking down the numbers

U.S. productivity plunged 2.7% in the first quarter of this year compared to last year, EY found. Thats a 0.9% year-over-year drop. Concurrently, quarter-over-quarter output grew slightly (0.2%), and hours worked grew 3%. That means people are working longer hours and barely putting out more products, because they just arent as productive as they used to be.

When you have an environment in which output is outpacing labor growth, thats an environment of stronger productivity, he explains to Fortune. When you have the opposite, when output growth is sluggish but labor growth is strong, you have a weak productivity environment. 

A rebound in productivity will be key to solving many of the economys current issues, Daco said, as that would lift supply and thereby reduce inflationary pressures.

Over the past five or six quarters, he says, economic activity has been sluggish, even as the country has seen a resilient labor market and continued job gains. People are working longer hours, he adds, so labor utilization has also been higher. Unit labor costs grew 6.3% this quarter, while compensation grew 3.4%. That combination has created conditions for the perfect storm: Weak productivity for five quarters straight, for the first time since post-World War II. 

Daco acknowledged hearing from clients that remote work could be making employees, well, work less hard.  From our clients across sectors, we hear similar stories of reduced productivity because of the new work environment, Daco says. He acknowledged that imperfect hybrid arrangements could be a possible cause of the productivity plummet. 

CEOs such as JPMorgans Jamie Dimon and Salesforces Marc Benioff have argued that in-person workers are simply doing more work, better than their remote colleagues. Dimon says long-term remote work just doesnt work for most employees; while Benioff says workers in the office consistently perform better. Both the bank and the tech giant have waffled on return-to-office mandates, but both have yielded to a hybrid planat least for now. 

Daco, however, highlighted another factor, which he says economists often underestimate, is that, over the past 18 months, the churn of labor has been tremendous. He points to recent BLS and JOLTS reports, which have found that the number of job openings, hire rates and quit rates have all reached record highs. 

That tells you its been very difficult for employers to, essentially, train their employees and bring them up to par with the productivity levels that would have been deemed normal pre-pandemic, he says. 

When the pandemic hit, it brought a combination of early retirement, a mass exit from the workforce, and an avalanche of job-switchers, a phenomenon alternately called the great resignation and the labor shortage. Taken together, it created a dearth of productivity. 

Because people were job-hopping so regularly, there wasnt really a chance to bring them up to the speed, or productivity, that a former worker wouldve had, he says. In other words: the outsize rate of churn has been a key, if under-appreciated, factor in sluggish productivity.

Nonetheless, hes optimistic numbers will trend towards normal again this year.

Productivity is the key out of this mess weve been in, he says. He characterizes the current environment as one of constraint: supply-chain constraint, labor constraint, and capital constraint. Increased productivity would alleviate each of those concernsas well as cost pressures.

One of the reasons sluggish productivity hurts the economy is not just that it limits supply; it leads to inflationary pressures, he says. Think of it like: a working employee has a cost. They have to be paid. That wage is offset by their productivity. What matters to an employer is how much theyre paying per unit of output. Thats unit labor cost. 

Generally, its difficult to ascertain how flexible work will impact productivity, and in turn, unit labor costs. But the whole idea of remote work and flexible work is to allow people to be more productive, Daco says. 

Granted, that hasnt always worked out according to plan. Workers have been using flexible hours to do things they otherwise wouldnt have time to do during the workdaylike laundry and grocery shoppingor would have had to delegate to someone elselike childcare or elderly care. Those are circumstances Dimon and Benioff would point at to argue remote workers are less productive because theyre doing chores instead of, well, working.

Now, Daco says hes optimistic that workers and bosses are coming toward an equilibrium, where all sides are trying to be as efficient as possible to get work done in their desired amount of time. That would mean a gain in productivity, he adds.

Addressing the trust factor

The problem with flexible work is, Daco says, it all comes back to trust.

Do you trust your employees to be working and producing the same as they would be if theyd been in the office? he asks. Some leaders believe that. Whether being in the office is more efficient depends on a number of thingsyour sector, the population you employ.

But for a lot of white collar jobs, unlike manufacturing jobs, the fact is inescapable: the office isnt essential. Work can be done remotely. The question is, he says, is there trust that employees are actually working?

The answer may be vital. As the labor market cools, employment growth diminishes, and the broader economy slows down, that will gradually transfer bargaining power back towards the employer, and away from the employee, Daco says.

As it stands, Daco said he thinks a hybrid arrangement will likely remain, but in-office cohorts will come out on top.

Well probably see more weight towards three to four days in the office, rather than one or two, if the labor market slows, he says. I dont think it will be all or nothing, necessarily.

That will have big implications for the Fed and monetary policy, he says. All else being equal, well have high inflationary pressures, so the Fed will likely be more hawkish. The rumbling banking crisis underscores the hazards to the economy of a hawkish Fed.

Productivity, in Dacos view, is the missing part of the puzzle, because it will relax inflationary pressures. In the absence of that productivity growth, well see the Fed act more hawkish than doveish.

Maybe you already limit your own eating to a tight 6- to 8-hour window everyday. Or perhaps you abstain for a full 24 hours a few days a week. If you dont, odds are that more than a couple of your co-workers do. 

A growing body of research suggests intermittent fasting has numerous health benefits. But how does running on empty impact your performance at work? 

From an evolutionary perspective, fasting is when your mind is working its best, says Mark Mattson, Ph.D., author of The Intermittent Fasting Revolution and a professor of neuroscience at Johns Hopkins University School of Medicine. If youre an animal in the wild that hasnt been able to get food for a few days, your brain and body better be working optimally or you wont survive. 

But how does it work for those of us trying to survive the rat race in the wilds of the concrete jungle? 

Fast track to better health

Many people credit intermittent fasting with weight loss. Some research suggests it has the power to stave off diabetes, heart disease, cancer, and dementiaeven help with an all-out slowdown of the aging process. 

It may be increased insulin sensitivity and reduced inflammation that underlie all these benefits. When you fast, your body responds better to insulin, the hormone that regulates blood sugar. With better overall blood sugar control and less circulating sugar to burn, the body resorts to burning fat instead. 

Better blood sugar control and less body fat may equal less overall inflammation, which seems to play a role in many of the diseases that are connected with aging. 

How fast are the effects?

Trying to prevent dementia that might not impact you for decades could arguably be enough reason to commit to rescheduling your mealtimes. But could intermittent fasting give you an edge before that, too? 

There arent a lot of studies into the more immediate effects of fasting on human brain performance. But animal research shows many examples of the benefits. 

Studies in mice show that within a few weeks of adopting the new schedule, levels of brain-derived neurotrophic factor (BDNF) rose. This brain molecule plays a role in learning, memory, and forming new connections in the brain. BDNF keeps depression and anxiety at bay, too. 

Once animals are adapted to intermittent fasting, we see anxiety levels drop, which makes them better able to concentrate, and then we see learning and memory improve, Mattson says. 

Better learning and memory on an empty stomach may sound counter intuitive. A lot of people would say they simply cant think straight on an empty stomach. It hardly sounds conducive to staying on top of your game at the office. But those feelings are fleeting.

Youve just got to adapt to it, Mattson says. Its like exercise: If you havent been exercising and you start running, youre not going to feel great at first. It takes a couple weeks to a month for your system to adapt. 

Once your body is forced to start burning fat for energy, rather than sugar, the fog should lift as your focus sharpens. Fasting can also improve sleep because you get digestion over with earlier in the day. Better quality sleep brings its own host of benefits, including a sharper mind. 

Set yourself up for success

There are a few ways to go about intermittent fasting. One way is setting a 6-to-8-hour eating window, where you get all your calories for the day within a certain period, say 10 a.m. to 6 p.m. Outside that window, you only drink water, black coffee, tea, or other zero-calorie beverages. 

Another option: fast for a full 24-hours one to two days a week. And a third version involves choosing two or more days a week to take in only 500 calories and eat normally on the other days.

Before you get started, keep in mind, this is not for everyone, says Caroline Susie, RDN, a spokesperson for the Academy of Nutrition and Dietetics. If you are pregnant, breastfeeding, on insulin for diabetes, or have a history of eating disorders, we dont want to go down this road. 

If youre not sure if its safe for you, talk to your doctor. Once youre ready, try these tips:

Start small

If you typically eat three square meals with snacks in between, spread across all your waking hours, suddenly fasting for 18 hours a day might be a stretch at first. Start with a 12-hour eating window, say from 6am to 6pm. Make that window a little smaller each week. 

Dont forget about nutrition

Some people think they can just eat whatever they want during their window. If you want to feel your best during fasting hours, and reap all the health benefits of this lifestyle, a well-balanced diet rich in fruit, vegetables, fiber, whole grains and lean protein, Susie says, is going to tee you up for success. 

Remember to hydrate

You can drink all the water you want during fasting hours, and you should. Some people will get headaches and misconstrue that as side effects of fasting, when they are just dehydrated.