UK Productivity “Significantly Less” Than G7 Average
New figures represent the widest productivity gap between the UK and other major economies since records began in 1991
The UK productivity rate is now “significantly less” than the G7 average with the UK now 17% behind the six other country members, a new report by the Office for National Statistics has found.
These new figures now mean the productivity gap between the UK and other major advanced economies – Canada, America, France, Germany, Italy and Japan – is at its widest since records began in 1991.
While the UK managed to narrow the gap with the rest of the G7 to just 4% in the early 2000’s, the trend has gone into reverse with the UK now 36% behind Germany.
The report also shows that UK labour output is trailing behind the US in all sub-sectors, particularly in manufacturing.
Comparisons with other European countries are more mixed, with UK manufacturing input estimated to be above that of Italy and UK output per worker a little higher than equivalent estimates for Germany and France.
The Trade Union Centre (TUC) general secretary, Frances O’Grady, said of the findings:
“For all the good news on rising employment, the UK is still not creating enough quality jobs. The yawning productivity gap between us and other countries shows how much room there is for us to do better.
“The loss of middle-income jobs, in vital industries like steel, is holding the economy back and dragging down pay.”