After the coronavirus pandemic, here's how the UK can solve its looming productivity crisis

Without taking steps to address the problems now, the UK risks sleepwalking its way into a further productivity slide in the midst of an economic crisis, says Chad Syverson

Since Covid-19, output per worker is down by over 3 per cent year on year, in the first quarter of 2020. (Getty Images)

The coronavirus pandemic came in the midst of a 15-year-long global productivity growth slowdown. The UK in particular has a poor track record in this area, with 2019 reports indicating that UK productivity is more than 30 per cent behind that of the US and up to 15 per cent behind Germany. The latest data from the Office for National Statistics reveals the worrying impact that Covid-19 is already having, with output per worker down by over 3 per cent year on year, in the first quarter of 2020.

Understandably, Covid-19 has pushed the issue far down the agenda of most governments and policy makers. But, without taking steps to address the problems now, the UK risks sleepwalking its way into a further productivity slide in the midst of an economic crisis.

Solving the issue is no mean feat but there are several things policy makers need to bear in mind as they consider these decisions.