UK Productivity Lower Than Most Of Major Economies

Output per hour in the UK was 16% lower than the rest of the industrialised countries of the G7 in 2012 according to the ONS. In terms of output per worker the UK was 19% behind the average for the rest.

UK output per hor and per worker fell whereas across the rest of the G7 they increased. Output per hour was 2% below the pre-recession level of 2007 and there is a 15% gap between its current level and where it would have been if it had grown at its pre-recession rate. There was a productivity gap of 5% for the rest of the G7.

Fall In Productivity In Q4 2012

Labour productivity on an output per hour basis fell by 0.5% in Q4 of 2012 and by 0.8% in manufacturing. Output per hour fell by 0.5% in the services sector. Market sector productivity fell by 0.6%, its lowest level since 2005.

Labour costs increased by 0.5% in Q4 2012, 1.8% higher than 2011. Labour costs in manufacturing increased by 1.7%, 7.4% higher than 2011.

Gross value added (GVA) fell by 0.3% while the number of workers increased by 0.6%, jobs increased by 0.5% and hours by 0.3%. Falling output with rising workers, jobs and hours suggests output per worker and output per job fell by 0.8% and output per hour fell by 0.5% (labour productivity is also calculable as growth of GVA minus growth of labour input).

Some people have more than one job which results in small differences between growth of output per worker and growth of output per job.

G7 Productivity Gap Widest Since 1993

The latest comparison of productivity across the G7 countries shows that output per hour in the UK was 16 points below the average for the rest of the major industrialised economies in 2011. It was also 21 points lower than the rest of the G7 in terms of output per worker. It is the widest productivity gap since 1993. Growth in GDP per hour grew in line with the rest of the G7 and faster than the US and Germany. Output per worker was unchanged between 2010 and 2011.

Labour Productivity Down

Labour productivity fell by 0.2% in Q3 of 2012 according to an ONS statistical bulletin. Market sector productivity (an experimental series) also fell by 0.6% to its lowest level since 2005. Services output/hour fell by 0.1%. Whole economy labour costs fell by 0.1%. Manufacturing unit wage costs fell by 0.1% and were 6.2% higher than 2011.

Labour Productivity Down On Last Year

Labour productivity in terms of output per hour fell by 0.9% in Q2 2012. Market sector productivity fell by 1.5% on the same basis. It is its lowest level since 2005. Output/hour in the services sector fell by 0.8% and by 1.5% in manufacturing. In the genetral production productivity fell by 1.3% cent over the second quarter. Whole economy unit labour costs increased by 0.3% in Q2 and were 3.2% up on last year. Manufacturing unit wage costs increased by 4.0% in Q2 and were 5.7% higher than 2011.

Services Productivity Falls While Economy Grows

Statistics released by the ONS show that whole economy labour productivity in terms of output per worker increased by 0.3% in the first quarter of 2011 compared with the same quarter a year ago while output per hour also increased by 0.3%. Unit wage costs increased by 0.6%. Output per job in the manufacturing sector increased by 4.4%. while in the service sector it fell by 0.5%.

Productivity Up 1.7%

Output per worker increased by 1.7% for the whole economy compared with the same quarter in 2009 and by 0.1% compared with the previous quarter. Output per hour increased by 1.4% in Q3 2010 compared with Q3 2009 and 0.3% on the last quarter. Unit wage costs increased by 0.5% compared woth 2009.

Manufacturing sector output per job increased by 8% in Q3 2010 compared with Q3 2009 and by 0.8% on the previous quarter. Output per job in the service sector increased by 1% on Q3 2009 and was unchanged on Q2 2010. In agriculture, output per job decreased by 8.2% and output per hour worked decreased by 11.6% in 2009 compared with 2008.