Britain closing its productivity gap
Friday 09 October 2009
The much-maligned British worker has achieved a marked improvement in productivity, according to new figures from the Office for National Statistics. The ONS's latest estimates for GDP per worker show that the UK's record on that score is now superior to Japan and similar to that of Germany, though it still lags behind Italy, France, and, especially, the US. It, thus, remains below the average of the G7 "club" of leading advanced economies.
Of still greater significance may be the trend, which shows that British productivity has been catching up with the competition. The UK has experienced faster productivity growth than all other G7 countries since 1991, as measured by GDP per worker. By 2008, UK GDP per worker had grown by 39 per cent since 1991. In terms of GDP per hour worked, British productivity increased by 49 per cent between 1991 and 2007. This represents the fastest rate of growth of any G7 country over the period, well above the average (excluding the UK) of 36 per cent.
Britain's relatively lacklustre productivity has long held back growth and been a concern of governments, and Gordon Brown gave the elimination of the "productivity gap" priority when he entered the Treasury in 1997. The continuous improvement in productivity since the early 1990s has been reversed slightly by the recession, though the UK has seen a less steep fall in GDP, and a less severe rise in unemployment than elsewhere.
- 1 Should Apple buy Greece?
- 2 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 3 Drummer Lee Rigby's family reject 'extremist' groups using Woolwich murder for political gain
- 4 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 5 Fox News anchor asks 'what's to prevent' three people from marrying after same-sex marriage legalised
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...