UK productivity may be stronger than official figures show, study says
Resolution Foundation analysis says alternative labour-market data point to improving UK worker productivity in recent years.
In short
- Resolution Foundation analysis says alternative labour-market data point to improving UK worker productivity in recent years.
Productivity in the United Kingdom may have improved more strongly in recent years than official figures indicate, according to new analysis from the Resolution Foundation.
The thinktank recalculated output per worker using an alternative measure of employment, arguing that it provides a more reliable picture than the UK labour force survey, which has faced criticism over falling response rates. Its findings suggest the economy may be beginning to move beyond the prolonged productivity weakness that followed the 2008 financial crisis.
Productivity measures how much economic output is produced for each worker and is an important driver of wages and living standards. Official data have suggested further deterioration in the mid-2020s, while the foundation’s adjusted measure shows recent improvement.
The analysis said the apparent gain was not explained simply by workers leaving lower-productivity sectors such as retail and hospitality. It also found the improvement was spread too widely across sectors to be attributed only to early adoption of artificial intelligence.
The report adds to a more positive set of recent signals about the British economy, though its conclusion depends on an alternative interpretation of workforce data rather than a revision to official statistics.
