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 grown by 0.4% from Quarter 2 (Apr to June) 2016 to Quarter 3 (July to Sept) 2016; looking over a broader period the “productivity puzzle” remains, with growth on average lower than prior to the downturn.
Productivity grew in the services industries but not in the manufacturing industries; services productivity is estimated to have grown by 0.3% on the previous quarter, while manufacturing productivity is estimated to have fallen by 0.2% on the previous quarter.
Earnings and other labour costs growth outpaced productivity growth, resulting in unit labour cost (ULC) growth of 2.3% in the year to Quarter 3 2016.
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.