by Steve Beasant on 5 July, 2017
UK labour productivity, as measured by output per hour, declined by 0.5% in the first three months of this year, according to new figures from the Office for National Statistics. It is the first fall since the end of 2015, commenting on the news Shadow Chancellor Vince Cable said:
“This should set off alarm bells in government. It confirms that we are nowhere near solving the UK’s productivity puzzle, which is holding back our economy and people’s living standards.
“Productivity fell following the financial crisis and has grown slowly since then, only returning to its pre-crisis level last year. After that fragile recovery, it looks like we are going backwards again.
“Without improvements in how much we all produce, workers will not earn more and we will be stuck in a world of stagnant or even falling wages.
“Productivity was sadly absent from the election debate, but we can’t ignore it any longer. Instead of being distracted by Brexit, we need to remain inside the Single Market while addressing the skills deficit and lack of investment that are the real cause of our problems.”Leave a comment