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The UK suffers the productivity sharpest decline in five years

Feb 16,2020 6:57 am

productivity in the UK Fell at its fastest annual pace in five years in the April-to-June quarter,

The Figure Fell , measured by output per hour - by the 0. 5%, after two previous quarters of zero growth.

Both services and manufacturing saw a decline from April to June, the ONS said.

He added: "This sustained period of falling labour productivity represents a continuation of the UK's 'productivity Puzzle '. "

The ONS added that the productivity has been increasing since the economic downturn in 2008, "slower than during the long period before the downturn".

Tej Parikh, chief economist at The Institute of Directors, said: "These figures hammer home the impact of uncertainty on The Business environment.

"Unsure of what is around The Corner , the company, the investment in new machines and technologies, which drives their performance was suffocated. Many companies are also build to trim their investment pipelines for the coming years, in order to have a cash cushion in anticipation of the difficult economic conditions ahead. "

analysis: Andrew Walker , BBC economics correspondent

Why productivity does, the amount of output that you require from any employee, no matter so much

In the long term, rising living standards, increases productivity.

It prize-winning economist Paul Krugman is a well-known line from the Nobel to it: "productivity isn't everything, but in the Long Run it is almost everything is there. To improve the ability of a country, the standard of living over time depends almost entirely to the increase of its capacity, its output per worker".

The period of weak productivity growth after the financial crisis has been a time in the economy, for most of the time, is growing, but not strong.

a more brighter spot was The Other element in the calculation of productivity and employment.

the UK now has the highest proportion of the population in employment since at least 1971 (that's how far back this particular data, the goes series).

More jobs but less productive than they would have been, had grown to the productivity, to the rates that we have seen in the past few decades.

Jon young, of the Chartered Institute of Personnel and development, said: "the companies have more immediate worries, as the increase in the productivity, but it is the only way to increase the pay packet in the long term.

"We must not be fooled by the recent strong profit growth figures, the pay was driven by a tight labour market and not an increase in the employers ability to. "

Howard Archer, chief economic adviser to the EY item Club, said: "Increased concern about the Brexit especially serious concerns in many companies from the United Kingdom to leave the EU without a Deal - clearly has company caused to limit your investment with damaging consequences for productivity.

"If a British EU-agreed exit Deal and adopted by the 31 October, this will, hopefully, business uncertainty, and some boost business investment to dilute it, that would be good news for the productivity prospects. "



office for national statistics, uk economy

Source of news: bbc.com

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