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, is estimated to have fallen by 0.5% from Quarter 4 (Oct to Dec) 2016 to Quarter 1 (Jan to Mar) 2017; over a longer time-period, labour productivity growth has been lower on average than prior to the economic downturn.
Labour productivity fell in services but rose in the manufacturing industries; services productivity fell by 0.6% on the previous quarter, while manufacturing productivity grew by 0.2% on the previous quarter.
Earnings and other labour costs growth outpaced productivity growth, resulting in unit labour cost (ULC) growth of 2.1% in the year to Quarter 1 2017.
The article provides statistics for several measures of labour productivity (GVA per hour worked, GVA per filled job). Statistics are provided for the NUTS1, NUTS2 and NUTS3 subregions of the UK, and for selected UK City Regions.