The significance of algorithm efficiency in programming lies in its direct impact on performance and resource utilization. Efficient algorithms require less time and computational power to execute, which is critical for handling large datasets or complex problems. This efficiency is typically measured using time complexity and space complexity metrics, guiding developers in selecting appropriate algorithms for their needs. Optimizing algorithm efficiency leads to faster application performance, enhanced user experiences, and lower operational costs, making it a central focus in fields such as software development, data analysis, and system architecture.