Different research on UK productivity shows it has been rising

Productivity in the UK has been improving in recent years despite official figures showing it was falling, according to new research.

The Resolution Foundation said output per hour has risen by 1.1% on average over the past two years, rather than the 0.2% fall implied by official statistics.

The think tank said it had produced an alternative measure of productivity, using payroll data and tax returns from self employment.

The report said the outcome showed a “very different” productivity picture across Britain.

Simon Pittaway, principal economist at the Resolution Foundation, said: “Britain’s dismal productivity record since the global financial crisis explains a lot of its economic stagnation and weak living standards growth, but while official figures suggest that the output of workers has worsened further in the mid-2020s, our more accurate productivity measure suggests that it has been improving in recent years.

“Some have suggested that recent productivity gains have been driven by an early AI boom, and workers leaving low-productivity sectors like retail and hospitality.

“But nether explanation is borne out by the data. Instead, the UK’s productivity recovery has been achieved by the same workers, doing the same jobs, and working in the same sectors.

“This productivity recovery is welcome, but it needs to be sustained and built upon if it’s to lead to big improvements in living standards.”

By Alan Jones, Press Association Industrial Correspondent

Press Association: News

source: PA

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