Falling labour productivity in the UK
Struggling UK labour market with productivity falling. Shows that the UK is unable to address the long running problem with productivity. Hence, GDP growth projections will need to be revisited by the Office for Budget Responsibility.
Labour productivity for Quarter 2 (Apr to June) 2019, as measured by output per hour, fell by 0.5% compared with the same quarter in the previous year; and followed two previous quarters of zero growth.
The chart from an earlier OBN report shows how the productivity problem has not been addressed in the last couple of years. This will remain a major problem and one that Brexit will only make worse as more inefficiency is built into the economic model.
Gert Kamstrup 