Office for National Statistics

Productivity puzzle (again)

Productivity
PA

Weak productivity growth has been one of the defining characteristics of the UK’s economic performance over the last decade. Average annual labour productivity growth between 2008 and 2018 was around 0.6%, which compares with around 1.8% over the decade prior to 2008.

That's according to the Office for National Statistics which has published an analysis of productivity.

What does it find?

  • The lowest-productivity businesses recorded negative gross value added (GVA) per worker in 2017, while the most productive 10% of workers in the UK recorded GVA per worker of more than £100,000 per worker per year. Median gross value added per worker per year was around £28,000 in 2017.
  • Businesses that were older and larger – in terms of employment – were more productive on average in 2017.
  • Foreign-owned businesses were around 18% more productive than equivalent, domestically-owned businesses, on average between 2006 and 2017.

Vulnerable economy?

Former member of the Bank of England's Monetary Policy Committee tweets: