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.
Labour productivity, as measured by output per hour, grew by 0.9% compared with the same quarter a year ago; this remains noticeably below the long-term trend observed before 2008 when productivity growth averaged nearly 2% per annum, and suggests the “productivity puzzle” remains unsolved.
Labour productivity grew, compared with the previous year, in both services and manufacturing industries by 0.9% and 0.7% respectively.
UK labour productivity is estimated to have fallen by 0.4% in the first three months of the year, as a result of continued strength in employment growth combined with weaker output growth; this is the first fall in output per hour since the second quarter of 2017.