UK productivity drops for third quarter in a row

first_imgKatherine Kent, head of productivity at the ONS, said the productivity crisis had caused “sluggish wage growth in recent years”. LONDON – JULY 23: Workers at one of the 19 national pandemic flu service call centres in the country, answer calls from people concerned about swine flu, July 23, 2009 in London, England. Over 1500 people have been employed to man these call centres as concerns about swine flu increase. (Photo by Richard Pohle/WPA Pool/Getty Images) He added: “Many of the new jobs that have been created are in less-skilled, low-paid sectors where productivity is limited.” The first quarter figure was dragged down by a 0.9 per cent year-on-year fall in manufacturing productivity, the ONS said. Productivity in the service sector grew by 0.2 per cent. whatsapp Read more: Pound falls as UK economy shrinks by 0.4 per cent in April Labour productivity – output per hour worked – fell by 0.2 per cent year on year in the first quarter of the year, the Office for National Statistics (ONS) said today. Howard Archer, chief economic adviser to the EY Item Club, said “under-investment and an inefficient allocation of resources” may be one of the factors to blame. Productivity levels are closely related to investment, as new technology and machinery helps workers do more work. Yet business investment has been declining in recent months, due largely to the uncertainty created by Brexit. Tej Parikh, chief economist at the Institute of Directors (IoD), said: “With political risks clouding business decisions, firms have lacked the confidence to invest in the equipment and technology that drive efficiency gains.” But the Bank of England has said productivity is around 20 per cent below where it would have been had it continued at pre-financial crisis levels. UK productivity fell for the third successive quarter in the first three months of the year, according to official figures released today, as Britain’s productivity crisis rumbled on. The figures show that Britain’s productivity crisis is continuing. Increasing productivity is central to improving living standards, as it creates wealth.  Harry Robertson Read more: Urgent action needed to tackle stagnating productivity, economists warn He said business leaders “want to see urgent progress on our skills agenda, infrastructure, and business support”. She said private sector workers have missed out on “an estimated average of £5,000 per year”. Friday 5 July 2019 10:43 am whatsapp UK productivity drops for third quarter in a row as crisis continues Tony Danker, chief executive of productivity campaign Be the Business, recommended businesses make “small improvements to boost performance by just two to three per cent per year”. Sharelast_img