The efficiency of the UK workforce calculated as output per worker, output per job and output per hour. Labour productivity is an important factor in determining the productive potential of the economy. Countries with strong labour productivity growth tend to benefit from high rates of growth and low inflation.
UK labour productivity, as measured by output per hour, grew by 0.6% from Quarter 1 (Jan to Mar) of 2016 to Quarter 2 (Apr to June) 2016. As a result, productivity on this metric has now returned to its pre-downturn level and has slightly exceeded it for the first time since 2008.
Extrapolating from performance prior to the downturn, output per hour was 17% lower than the pre-downturn trend in Q2 2016.
Output per hour in the services industries grew by 0.6% in Quarter 2 2016 when compared with the previous quarter and was 1.1% higher than a year earlier. Output per hour in manufacturing rose by 2.2% on the previous quarter and was 1.0% higher than a year earlier.