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GDP and the Labour Market, Q2 2012, September GDP Update

Released: 27 September 2012 Download PDF

GDP and Employment, seasonally adjusted

GDP and Employment, seasonally adjusted
Source: Office for National Statistics

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The revised fall of 0.4 per cent between the first and second quarters of 2012 is the third consecutive quarterly contraction in GDP, and consequently output has now fallen by 0.5 per cent during the last year. During the second quarter, the three main sectors of the economy contracted, with construction providing the largest negative contribution to growth.

The weakness in construction contributed 0.2 percentage points of the 0.4 per cent fall in GDP in the second quarter, following a negative contribution of 0.4 percentage points in the first quarter.

The fall in output contrasts with the resilience of the labour market. The employment rate in the second quarter of 2012 was 71.0 per cent, 0.4 percentage points higher than the previous quarter and the highest quarterly employment rate since the first quarter of 2009. The 0.7 per cent rise in employment was accompanied by a rise of 0.5 per cent in total hours, as average weekly hours worked fell by 0.2 per cent.

The current situation, where falling output is accompanied by a resilient labour market, is discussed in an ONS article, The Productivity Conundrum, Interpreting the recent behaviour of the economy.

Source: Office for National Statistics

Background notes

  1. Sources:

    Gross Domestic Product index (YBEZ): chained volume measures, seasonally adjusted, Office for National Statistics. Gross Domestic Product quarter on quarter previous year growth (IHYR): chained volume measures, seasonally adjusted, Office for National Statistics. Gross Domestic Product quarter on previous quarter growth (IHYQ): chained volume measures, seasonally adjusted, Office for National Statistics.

    Employment level (MGRZ): Labour Force Survey, all aged 16 and over, seasonally adjusted, Office for National Statistics. Employment rate (LF24): Labour Force Survey, all aged 16 to 64, seasonally adjusted, Office for National Statistics. Total weekly hours (YBUS): Labour Force Survey, all aged 16 and over, seasonally adjusted, Office for National Statistics. Average actual weekly hours worked (YBUV): all workers, all aged 16 and over, seasonally adjusted, Office for National Statistics.

  2. GDP estimate for quarter two from 'Quarterly National Accounts – Q2 2012' published on 27 September 2012. Most recent Labour Market estimates are available from the ‘Labour Market Statistical Bulletin’ published on 12 September 2012.

  3. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

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