It is certainly true that UK productivity has hardly grown in the years since the Financial Crisis. It is also the case that the UK has performed worse than other developed economies. However, the reason for this relative under-performance does not lie with “total factor productivity” (the portion of outputs not explained by the amount of inputs used in production). In considering what strategies are … Continue reading UK Productivity – JKP 2024

It is no secret that the U.K. economy is not in a great state: A recession (three consecutive quarters of economic contraction) was declared after the last fiscal quarter of 2023, following a decade of borderline economic stagnation, and with annual GDP growth (a measure of all the goods, and services produced) no greater than the two per cent pre-COVID[1] rate. The picture painted by the … Continue reading UK Productivity – JKP 2024

Amidst the complexities of the UK economy, productivity stands in the way of sustained economic growth. The UK’s productivity has barely grown since the financial crisis. One method of measuring this is through using total factor productivity (TFP). Since 2007, just before the financial crash the following year, the TFP of the UK has only increased 1.7%, compared to the 27% increase from the 16 years preceding … Continue reading What strategies would be most effective for improving UK productivity? – JKP 2024

Productivity is defined as the amount of output produced per unit of input. The most commonly used notion is labour productivity which denotes output per working hour. It has been widely acknowledged that the UK has suffered from a productivity problem: a 0.3% decrease in GDP per hour compared to 2022 and a decrease of 24% from the forecasted trend pre-financial crisis, ranking the UK bottom of all … Continue reading What strategies would be most effective for improving UK productivity? – JKP 2024