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 0.5% from the fourth calendar quarter (Oct to Dec) of 2015 to the first calendar quarter (Jan to Mar) of 2016 and was some 17% below an extrapolation based on its pre-downturn trend.
Output per hour in services rose by 0.5% in the first quarter on the previous quarter and was 1.1% higher than a year earlier. Output per hour in manufacturing rose by 0.7% on the previous quarter but was 1.5% lower than a year earlier.
Output per worker and output per job were 0.3% and 0.4% higher in the first quarter compared with the previous quarter, respectively. Average hours worked were broadly unchanged on the quarter, resulting in similar growth rates for each of these measures.