Britain’s productivity gap with its major developed country rivals is at its widest in 20 years, following the flat-lining of the economy since the deep recession of 2008-09.
International comparisons released by the Office for National Statistics show that output per hour worked in the UK is 21% lower than the average for the other six members of the G7 – the US, Germany, France, Italy, Japan and Canada.
The ONS said this was the biggest productivity shortfall since 1992, and that on an alternative measure – output per worker – the gap was 25%.
During the 1990s and 2000s, the UK closed the gap with the other G7 nations to less than 10%, but in the years since the 2007 financial crisis weak output and a smaller loss of jobs than in previous recessions has led to a marked worsening in Britain’s productivity record.
The ONS said that the UK’s productivity deficit was most pronounced in comparison with the US, Germany and France, where the gap was now more than 30%.
Chosen excerpts by Job Market Monitor. Read the whole story at UK productivity gap with developed nations now widest for 20 years | Business | theguardian.com.
The Report Key points
Output per hour in the UK was 21 percentage points below the average for the rest of the major G7 industrialised economies in 2012, the widest productivity gap since 1992. On an output per worker basis, UK productivity was 25 percentage points below the average for the rest of the G7 in 2012.
UK output per hour and output per worker fell in 2012 compared with 2011. By contrast, output per hour was unchanged in 2012 on average across the rest of the G7, and output per worker increased slightly.
In 2012 UK output per hour was 3 percentage points below its level in the pre-recession year of 2007, and 16 percentage points below the counterfactual level had productivity grown at its average rate before the recession. This compares with a productivity gap in 2012 of around 5 percentage points for the rest of the G7.
Chosen excerpts by Job Market Monitor. Read the whole story at International Comparisons of Productivity – Final Estimates, 2012 – ONS.