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Statistical bulletin: Labour Productivity, Q4 2013 This product is designated as National Statistics

Released: 01 April 2014 Download PDF

Labour Productivity, Q4 2013

  • On an output per hour basis, UK labour productivity increased by 0.3% in the fourth quarter of 2013 to a level that was 0.7% higher than a year ago. Output per worker was unchanged in Q4.
  • Output per hour in service industries grew by 0.3% in the fourth quarter, and has grown or been unchanged in each quarter of 2013. Across the production industries, output per hour grew by 1.2% in the fourth quarter, reversing a fall of a similar magnitude in the previous quarter.
  • In 2013 as a whole, labour market activity grew at similar rates to 2012: jobs and workers grew 1.3%, hours worked grew 2.0%, but the rate of output growth accelerated from 0.4% to 1.7%. This is reflected in improved labour productivity performance: output per worker grew by 0.4% in 2013 (compared with a fall of 0.8% in 2012) and output per hour fell by 0.3% compared with a fall of 1.6% in 2012.
  • Whole economy unit labour costs decreased by 0.2% in Q4 2013 and were 0.9% higher than a year earlier, the slowest rate of increase since Q2 2011. Manufacturing unit wage costs increased by 0.6% in Q4 and were 0.5% higher than a year earlier.
  • ONS has developed new labour statistics which provide a full breakdown between employees and the self-employed and include a number of methodological improvements. Revised estimates of labour productivity using these new statistics will be published shortly.

About this release

This quarterly bulletin contains labour productivity statistics for the fourth quarter of 2013 for the whole economy and a range of industries, together with selected data on unit labour costs. Labour productivity measures the amount of real (inflation-adjusted) economic output that is produced by a unit of labour input (in terms of workers, jobs and hours worked) and is a key indicator of economic performance. Since labour costs account for around two-thirds of the cost of production of UK economic output, unit labour costs provide an indication of inflationary pressures in the economy.

Output statistics in this release are consistent with the latest Quarterly National Accounts published on 28 March 2014. Labour input measures are consistent with the latest Labour Market Statistics published on 19 March 2014. The industry breakdowns in this release use estimates of jobs by industry for December 2013 which were not published in the March labour market release. More information on sources used in this release is available in the 'Notes on sources' section below.

What's new?

Reflecting user feedback, this release focuses on the level of productivity as well as rates of change. Most of the figures in the statistical bulletin include index levels and the Reference Tables now include levels of productivity (£ per job and per hour) in the price base year (currently 2010) for a range of manufacturing and service industries to provide an indication of the variation of labour productivity between different parts of the economy. This variation reflects a number of factors including different degrees of capital intensity and differences in the skill composition of the workforce.

Interpreting these statistics

At the whole economy level output (gross value added – GVA) increased by 0.7% in the fourth quarter of 2013, while the Labour Force Survey (LFS) shows that the number of workers and jobs (which are closely correlated) increased by 0.6% and 0.5% respectively over this period, and the number of hours worked rose by 0.4%1. Since growth of labour productivity can be decomposed as growth of GVA minus growth of labour input, this combination of movements in output, workers, jobs and hours implies that UK output per worker was unchanged, output per job increased by 0.2% and UK output per hour increased by 0.3% over this period2.

Differences between growth of output per worker and output per job reflect changes in the ratio of jobs to workers. This ratio was little changed in Q4. Differences between these measures and output per hour reflect movements in average hours which, though typically not large from quarter to quarter, can be material over a period of time. For example, a shift towards part-time employment will tend to reduce average hours. For this reason, output per hour is a more comprehensive indicator of labour productivity and is the main focus of the commentary in this release.

Unit labour costs (ULCs) reflect the full labour costs, including social security and employers’ pension contributions, incurred in the production of a unit of economic output, while unit wage costs are a narrower measure, excluding non-wage labour costs3. Growth rates of these series can be decomposed as growth of labour costs (wages) per unit of labour input minus growth of labour productivity. With labour productivity increasing by 0.3% on an output per hour basis in the fourth quarter, the 0.2% decrease in ULCs implies that labour costs per hour were essentially unchanged across the economy as a whole. In the manufacturing sector, the combination of output per hour growth of 1.4% and unit wage cost growth of 0.5% implies growth in wage costs per hour of around 1.9%.

Most of the series in this release are designated as National Statistics, meaning their production has been subject to rigorous quality assurance and methodological scrutiny. However, some service industry estimates use component series from the Index of Services (IOS) which are designated as experimental statistics (that is, not yet accredited as National Statistics, for example because the methodology is under development or reflecting concerns over data sources). Market sector GVA is also an experimental series.  Labour productivity estimates that use these series as their numerators are also labelled as experimental statistics. More information on the experimental IOS series is available on the Guidance and methodology section of the ONS website. 

Notes for Interpreting these statistics

  1. Growth rates for jobs and hours differ slightly from growth rates based on LFS aggregate data due to different methods of seasonal adjustment.

  2. Differences between growth rates of productivity and (growth of GVA minus growth of labour inputs) are due to rounding.
  3. Both measures include labour costs of the self-employed.

General commentary

Whole economy real output per hour fell for six consecutive quarters between Q3 2011 and Q4 2012, reflecting a combination of resilience in the labour market and sluggish output growth. Since the start of 2013 the average pace of output growth has accelerated while the average growth of hours worked has slowed a little, allowing a slow expansion of output per hour. Other measures of labour productivity show a broadly similar picture: output per worker and output per job both bottomed out in Q4 2012 and showed some signs of recovery through the course of 2013.

Looking at annual levels of productivity, output per hour was around 1 percentage point below its level in 2010 in 2013 (and over 3 percentage points lower than the level in 2008, before the economic downturn). Output per worker and output per job had both regained their 2010 levels in 2013. This pattern reflects faster growth of hours worked than workers employed and the number of jobs; or equivalently, a small increase in average hours per worker and per job.

Labour productivity movements in production industries have tended to be more volatile than those in services. Output per hour in production drifted downwards on a trend basis between 2010 and Q1 2013 and has see-sawed since then. In terms of levels, output per hour at the end of 2013 was almost 6 percentage points lower than in 2010, compared with less than 1 percentage point for the whole economy. This masks a rather better productivity performance by manufacturing, which is the largest component of the production industries, and reflects steep falls in labour productivity in the non-manufacturing components of production, especially the oil and gas industry.

Labour productivity across all service industries closely mirrors that of the whole economy, reflecting the large weight of services in overall economic activity. On an annual basis, labour productivity in services has been broadly flat since 2010 measured either by output per hour or output per job.

Movements in unit labour costs (ULCs) reflect underlying movements in labour productivity and  costs per unit of labour input (for example, per hour or per job), and can be interpreted in different ways. For example, muted growth of whole economy ULCs against a backdrop of stuttering productivity growth can be seen as a reflection of weakness in narrow measures of labour costs such as weekly earnings. And weak labour cost growth can also be seen as an effect of weak productivity growth.

Between 2010 and 2013, whole economy ULCs grew at an average rate of 1.2% per year. This can be decomposed into growth of 0.8% per year of labour costs per hour worked, and an average reduction of 0.4% in output per hour. Looking at ULCs from the wider inflation perspective, average growth of 1.2% per year since 2010 compares with average growth of 3.3% for the Consumer Price Index over this period, suggesting that inflationary pressure has predominantly been sourced outside the labour market.

Whole economy labour productivity

Figure 1 shows whole economy output per worker in terms of index levels and percentage changes. Figure 2 shows whole economy output per hour, and Table A provides a breakdown of the components of labour productivity movements over recent quarters. More information is available in the Reference Tables section of this release, and in the tables at the end of the PDF version of this statistical bulletin.

Figure 1: Whole economy output per worker

Seasonally adjusted

Figure 1: Whole economy output per worker
Source: Office for National Statistics

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Figure 2: Whole economy output per hour

Seasonally adjusted

Figure 2: Whole economy output per hour
Source: Office for National Statistics

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Table A: Whole economy labour productivity components

Seasonally adjusted

Output Productivity Jobs Productivity Hours
Per cent Change on quarter a year ago Change on previous quarter   Change on quarter a year ago Change on previous quarter   Change on quarter a year ago Change on previous quarter
2010 Q1 0.2 0.6 -1.5 -0.5 -1.2 -2.1
Q2 1.9 1.0 0.3 0.9 0.4 1.6
Q3 2.5 0.5 1.0 0.6 1.1 0.2
Q4 1.9 -0.3 0.7 -0.3 0.1 0.4
2011 Q1 1.6 0.4 1.8 0.6 2.2 0.0
Q2 0.9 0.2 0.8 -0.1 -0.5 -1.1
Q3 1.0 0.6 -0.3 -0.5 0.1 0.8
Q4 1.2 -0.1 0.0 0.0 -0.1 0.2
2012 Q1 0.8 0.0 0.1 0.7 0.6 0.7
Q2 0.2 -0.4 0.9 0.7 2.2 0.5
Q3 0.3 0.8 1.7 0.3 2.6 1.2
Q4 0.2 -0.2 2.1 0.4 2.6 0.2
2013 Q1 0.6 0.4 1.2 -0.2 2.2 0.3
Q2 1.7 0.7 1.0 0.5 2.0 0.3
Q3 1.8 0.8 1.4 0.7 1.8 1.1
Q4 2.7 0.7 1.5 0.5 2.0 0.4

Table source: Office for National Statistics

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Unit labour costs

Figure 3 shows whole economy ULCs in terms of index levels and percentage changes on the previous quarter and on the previous year.

Figure 3: Whole economy unit labour costs

Seasonally adjusted

Figure 3: Whole economy unit labour costs
Source: Office for National Statistics

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Manufacturing unit wage costs (Figure 4) increased by 0.6% in the fourth quarter and were 0.5% higher than a year earlier. As well as being a narrower measure than unit labour costs, the manufacturing unit wage cost series currently uses average weekly earnings in manufacturing (a measure of employee earnings) to proxy the earnings of self-employed workers in manufacturing, which is inconsistent with other ONS data on incomes of the self employed.

ONS published proposals for replacing manufacturing unit wage costs with a broader and more consistently derived measure of manufacturing ULCs in an article 'Sectional unit labour costs' on 28 November 2012.

At the present time, ONS data delivery schedules for some of the input data series do not provide sufficient time to compile and test new ULCs in time for inclusion in this statistical release. New estimates are currently produced shortly after this release and added to the release page. The previous component can be found here.

Figure 4: Manufacturing unit wage costs

Seasonally adjusted

Figure 4: Manufacturing unit wage costs
Source: Office for National Statistics

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More information on unit labour costs and unit wage costs is available in Table 2 in the Reference Tables section of this release, and in the tables at the end of the PDF version of this statistical bulletin.

Manufacturing labour productivity

Figures 5 and 6 show movements in labour productivity in manufacturing in terms of levels and percentage changes on the previous quarter and on the previous year. Table B provides information on the component movements in manufacturing output and labour inputs.

Figure 5: Manufacturing output per job

Seasonally adjusted

Figure 5: Manufacturing output per job
Source: Office for National Statistics

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Figure 6: Manufacturing output per hour worked

Seasonally adjusted

Figure 6: Manufacturing output per hour worked
Source: Office for National Statistics

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Table B: Manufacturing labour productivity components

Seasonally adjusted

Output Productivity Jobs Productivity Hours
Per cent Change on quarter a year ago Change on previous quarter   Change on quarter a year ago Change on previous quarter   Change on quarter a year ago Change on previous quarter
2010 Q1 2.1 0.9 -4.3 -1.8 -1.8 -2.8
Q2 4.0 2.0 -2.2 0.2 -0.8 1.0
Q3 5.5 1.2 -2.0 -0.1 -0.2 0.0
Q4 5.1 0.8 -0.8 0.9 0.3 2.1
2011 Q1 4.4 0.2 1.2 0.2 3.1 0.0
Q2 2.5 0.2 0.3 -0.7 -0.6 -2.7
Q3 0.9 -0.4 -0.5 -0.9 -1.2 -0.6
Q4 -0.4 -0.4 -1.9 -0.5 -3.6 -0.4
2012 Q1 -0.6 -0.1 -1.5 0.6 -2.6 1.1
Q2 -2.1 -1.3 0.6 1.4 0.8 0.7
Q3 -1.3 0.5 1.9 0.4 2.2 0.8
Q4 -2.7 -1.8 2.0 -0.4 1.9 -0.7
2013 Q1 -2.8 -0.2 0.1 -1.3 1.1 0.3
Q2 -0.9 0.6 -1.7 -0.4 0.5 0.1
Q3 -0.6 0.8 -1.0 1.1 1.0 1.3
Q4 1.8 0.6 -0.4 0.2 1.0 -0.7

Table source: Office for National Statistics

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More information on labour productivity of sub-divisions of manufacturing is available in the Reference Tables section of this release (Tables 3 and 4), and in the tables at the end of the PDF version of this statistical bulletin. Care should be taken in interpreting quarter on quarter movements in productivity estimates for individual sub-divisions, as small sample sizes of the source data can cause volatility.

New for this release, Tables 3 and 4 now include estimates for the level of productivity in £ terms for the National Accounts base year of 2010. These are estimates of gross value added per unit of labour input and are not necessarily related to pay rates. Output per job (Table 3) varied from £37.0k in Textiles and clothing (divisions 13-15) to £117.2k in Chemicals & Pharmaceuticals (divisions 20-21). The average for the whole of manufacturing was £54.6k and the average for the whole economy was £44.1k in 2010.

Chemicals & Pharmaceuticals was also top of the distribution for output per hour in 2010 (£77.8), with Wood, paper etc (divisions 16-18) and Basic metals & metal products (divisions 24-25) at the bottom of the distribution. On this basis the average for manufacturing as a whole was £29.4 and the average for the whole economy was £27.9 per hour, that is: across the whole economy, £27.9 of economic output was generated on average for each hour worked in 2010. 

Services labour productivity

Figures 7 and 8 show movements in labour productivity in services in terms of index levels and percentage changes on the previous quarter and on the previous year. Table C provides information on the component movements in services output and labour inputs.

Figure 7: Services output per job

Seasonally adjusted

Figure 7: Services output per job
Source: Office for National Statistics

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Figure 8: Services output per hour

Seasonally adjusted

Figure 8: Services output per hour
Source: Office for National Statistics

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Table C: Services labour productivity components

Seasonally adjusted

Output Productivity Jobs Productivity Hours
Per cent Change on quarter a year ago Change on previous quarter   Change on quarter a year ago Change on previous quarter   Change on quarter a year ago Change on previous quarter
2010 Q1 0.0 0.3 -0.6 -0.1 -0.5 -1.8
Q2 1.0 0.4 1.0 0.8 0.8 1.4
Q3 1.4 0.5 1.3 0.6 1.3 0.2
Q4 0.9 -0.3 1.2 -0.1 0.0 0.2
2011 Q1 1.2 0.5 2.0 0.7 2.2 0.4
Q2 1.2 0.4 1.3 0.1 -0.3 -1.1
Q3 1.6 1.0 0.1 -0.6 0.4 0.9
Q4 2.0 0.0 0.3 0.1 0.7 0.5
2012 Q1 1.8 0.3 0.2 0.6 1.0 0.7
Q2 1.2 -0.1 0.8 0.7 2.7 0.6
Q3 1.2 1.0 1.8 0.4 3.2 1.4
Q4 1.0 -0.1 2.5 0.8 3.3 0.6
2013 Q1 1.2 0.5 1.8 -0.1 2.6 0.1
Q2 1.9 0.5 1.7 0.6 2.5 0.5
Q3 1.6 0.7 2.0 0.7 1.9 0.8
Q4 2.5 0.8 1.6 0.5 1.7 0.4

Table source: Office for National Statistics

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More information on labour productivity of sections within services is available in Tables 5 and 6 in the Reference Tables section of this release, and in the tables at the end of the PDF version of this statistical bulletin. 

In general, the dispersion of labour productivity growth rates across services is less pronounced than within manufacturing. At face value, the dispersion of productivity levels is more pronounced. However, it should be borne in mind that labour productivity in Real Estate Activities (section L) is affected by the National Accounts concept of output from owner-occupied housing, which adds to the numerator but without a corresponding component on the denominator. Excluding this industry, output per job (Table 5) varied from £19.1k in Accommodation & food services (section I) to £116.6k in Finance & insurance (section K) in 2010. These industries were also at the bottom and top of the productivity distribution in terms of output per hour (Table 6).

Market sector (experimental statistics) labour productivity

Figure 9 shows movements in labour productivity in the market sector compared with the equivalent series for the whole economy. On a year on year basis the two series have moved similarly in recent years.

Between 2010 and 2013, output has increased at almost exactly the same rate on average in both the whole economy and the market sector (just over 1% per year in each case). However, over this period hours worked in the market sector have increased by 2% per year on average, while hours worked in the non-market sector have fallen at an average rate of 1.1% per year.

Figure 9: Market sector and whole economy output per hour

Seasonally adjusted

Figure 9: Market sector and whole economy output per hour
Source: Office for National Statistics

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Longer time series on market sector labour productivity are available in Table 7 of the Reference Tables section of this release, and in the tables at the end of the PDF version of this statistical bulletin.

Revisions

Table R1 in the Reference Tables section of this release (and in the tables at the end of the PDF version of this statistical bulletin) shows revisions to growth rates of the main productivity variables for the whole economy, manufacturing and services between this release and the previous release on 24 December 2013.  Revisions arise from a combination of revisions to GVA (from Q1 2012) and revisions to jobs and hours from Q4 2011. In all cases revisions principally affect the distribution across industries and sectors rather than the whole economy aggregates; there are no revisions to whole economy labour inputs.

A research note on sources of revisions (145.4 Kb Pdf)  to labour productivity estimates is available on the ONS website.

Table D below summarises differences between first published estimates for each of the statistics in the first column with the estimates for the same statistics published three years later. This summary is based on five years of data, that is, for first estimates of quarters between Q1 2006 and Q4 2010, which is the last quarter for which a three-year revision history is available. The averages of these differences with and without regard to sign are shown in the right hand columns of the table, and these can be compared with the value of the estimates in the latest quarter, shown in the second column. Additional information on revisions to these and other statistics published in this release is available in the  Revisions triangles (3.17 Mb Excel sheet) component of this release.

This revisions analysis shows that whole economy labour productivity growth estimates have tended to be revised down over time, by 0.2 percentage points (on a year-on-year basis), while unit labour cost growth estimates have tended to be revised up by 0.2-0.3 percentage points. Absolute revisions have been larger for unit labour costs than for productivity. Were the average revisions to apply to the current release, growth of output per hour in the year to the fourth quarter of 2013 would be revised down from 0.7% to 0.5% three years from now, and growth of unit labour costs would be revised up from 0.9% to 1.2% over the same period.

Table D: Revisions analysis

Whole economy

Revisions between first publication and estimates five years later (2006Q1 - 2010Q4)
Change on quarter a year ago Value in latest period (per cent) Average over 5 years (bias) Average over 5 years without regard to sign (average absolute revision)
Output per worker 1.3 -0.2 0.7
Output per job 1.2 -0.2 0.7
Output per hour 0.7 -0.2 0.6
Unit labour costs 0.9 0.3 1.1
Unit wage costs 0.5 0.2 0.9

Table source: Office for National Statistics

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Notes on sources

The measure of output used in these statistics is the chain volume (real) measure of Gross Value Added (GVA) at basic prices, with the exception of the regional analysis in Table 9 (in the Reference Tables and the PDF version of this statistical bulletin), where the output measure is nominal GVA (NGVA). These measures differ because NGVA is not adjusted to account for price changes; this means that if prices were to rise more quickly in one region than the others, then this would be reflected in apparent improved measured productivity performance in that region relative to the others. At the whole economy level, real GVA is balanced to other estimates of economic activity, primarily from the expenditure approach. Below the industry level, real GVA is estimated by deflating measures of turnover; these estimates are not balanced through the supply-use framework and the deflation method is likely to produce biased estimates. This should be borne in mind in interpreting labour productivity estimates below the whole economy level.

Labour input measures used in this bulletin are known as 'productivity jobs' and 'productivity hours'. Productivity jobs differ from the workforce jobs (WFJ) estimates published in Table 6 of the Labour Market Statistics Bulletin, in three ways:

  • To achieve consistency with the measurement of GVA, the employee component of productivity jobs is derived on a reporting unit (RU) basis, whereas the employee component of the WFJ estimates is on a local unit (LU) basis. This is explained further below.

  • Productivity jobs are scaled so industries sum to total LFS jobs. Note that this constraint is applied in non-seasonally adjusted terms. The nature of the seasonal adjustment process means that the sum of seasonally adjusted productivity jobs and hours by industry can differ slightly from the seasonally adjusted LFS totals.

  • Productivity jobs are calendar quarter average estimates whereas WFJ estimates are provided for the last month of each quarter.

Productivity hours are derived by multiplying employee and self-employed jobs at an industry level (before seasonal adjustment) by average actual hours worked from the LFS at an industry level. Results are scaled so industries sum to total unadjusted LFS hours, and then seasonally adjusted. 

WFJ estimates for December 2013 were not not published in the March edition of Labour Market Statistics. This does not affect production of estimates in this release because estimates of the RU component of employee jobs are available as normal.

Industry estimates of average hours derived in this process differ from published estimates (found in Table HOUR03 in the Labour Market Statistics release) as the HOUR03 estimates are calculated by allocating all hours worked to the industry of main employment, whereas the productivity hours system takes account of hours worked in first and second jobs by industry.

Whole economy unit labour costs are calculated as the ratio of total labour costs (that is, the product of labour input and costs per unit of labour) to GVA. Further detail on the methodology can be found in Revised methodology for unit wage costs and unit labour costs: explanation and impact.

Manufacturing unit wage costs are calculated as the ratio of manufacturing average weekly earnings (AWE) to manufacturing output per filled job. On 28 November 2012 ONS published Productivity Measures: Sectional Unit Labour Costs describing new measures of unit labour costs below the whole economy level, and proposing to replace the currently published series for manufacturing unit wage costs with a broader and more consistent measure of unit labour costs. Work to incorporate these new estimates in this statistical bulletin is ongoing. In the interim period, the new estimates are published as a component of this release shortly after publication.

What is a reporting unit?

The term 'enterprise' is used by ONS to describe the structure of a company. Individual workplaces are known as 'local units' and a group of local units under common ownership is called the 'enterprise'. Reporting units are the parts of enterprises that return data to ONS. While the majority of reporting units and enterprises are the same, larger enterprises have been split into reporting units to make the reporting easier.

For most business surveys run by ONS, forms are sent to the reporting unit rather than local units, in other words, to the head office rather than individual workplaces. This enables ONS to gather information on a greater proportion of total business activity than would be possible by sending forms to a selection of local units. But it has the disadvantage that it is difficult to make regional estimates – for instance all the employment of, say, a chain of shops would be reported as being concentrated at the site of the head office.

Further differences between reporting unit and local unit data can be seen in the industry coding. Take, for example, a reporting unit with three cake shops and one bakery, each employing five people. The local unit analysis would put 15 employees in the retail industry and five employees in the manufacturing industry. But the reporting unit series puts all 20 people into the industry with the majority activity, in this case, retailing. Detailed industry figures compiled using the local unit approach will therefore be different from industry figures using the reporting unit approach, although the totals will be the same at the whole economy level.

Background notes

  1. This statistical bulletin

    This statistical bulletin presents Labour Productivity estimates for the UK. More detail can be found on the Productivity Measures Topic page on the ONS website.

    Index numbers are referenced to 2010=100, are classified to the 2007 revision to the Standard Industrial Classification (SIC) and are seasonally adjusted.

    Quarter on previous quarter changes in output per job and output per hour worked for some of the manufacturing sub-divisions and services sections should be interpreted with caution as the small sample sizes used can cause volatility.

  2. Quality and Methodology

    A revised and updated Quality and Methodology Information paper for Labour Productivity was published in March 2012. This paper describes the intended uses of the statistics presented in this publication, their quality and methods used to produce them. It also includes more information on the uses and limitations of labour productivity estimates.

  3. Future developments

    ONS has recently developed new and improved measures of labour input as part of ongoing work to comply with EU regulations.  Specifically, these new measures provide an industry breakdown of employment (i.e. on a headcount basis rather than a job basis), and provide a split between employees and the self-employed.  For methodological consistency, this work has also made some changes to the computation of corresponding hours series.  These series are currently available on the Eurostat website and ONS has published an article entitled Introducing New Labour Productivity Statistics which describes these new series.  ONS also intends to publish unit labour costs by section.

    Subject to user feedback, ONS intends (i) to bring the estimates of productivity hours in this Release into line with the estimates provided under EU regulations and (ii) to replace the estimates of productivity jobs in this Release with new estimates of "productivity workers"; that is, to focus on a headcount distribution rather than a jobs distribution of labour. Both of these changes would have implications for the corresponding measures of labour productivity, which are set out in the Introducing New Labour Productivity Statis tics article.

  4. Other data on productivity

    ONS publishes International comparisons of labour productivity in levels and growth rates for the G7 countries.

    More international data on productivity are available from the OECD, Eurostat, and the Conference Board.

    ONS publishes experimental estimates of Multi-factor productivity (MFP), which decompose output growth into the contributions that can be accounted for by labour and capital inputs. In these estimates, the contribution of labour is further decomposed into quantity (hours worked) and quality dimensions.

    ONS also publishes experimental indices of labour costs per hour. These differ from the concept of labour costs used in the unit labour cost estimates in this release. The main difference is that experimental indices of labour costs per hour relate to employees only, whereas unit labour costs also include the labour remuneration of the self-employed.

    Lastly, ONS publishes a range of Public sector productivity measures and related articles. These measures define productivity differently from that used in the ONS labour productivity and MFP estimates. Further information can be found in Phelps (2010) (252.5 Kb Pdf) .

    More information on the range of ONS productivity estimates can be found in the ONS Productivity Handbook.

  5. User engagement

    A note of the latest Productivity Statistics User Group Workshop held on 28 January 2014 is available here. If you are interested in attending future workshops or if you have any comments on this release please email Productivity@ons.gsi.gov.uk.

    You can follow ONS on Twitter: www.twitter.com/ons and Facebook: www.facebook.com/statisticsons and watch our videos at www.youtube.com/onsstats

  6. 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

    The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.

    Designation can be broadly interpreted to mean that the statistics:

    • meet identified user needs;
    • are well explained and readily accessible;
    • are produced according to sound methods; and
    • are managed impartially and objectively in the public interest.

    Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

Statistical contacts

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John Allen +44 (0)1633 456086 ONS productivity@ons.gsi.gov.uk
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