UK productivity is falling behind, ONS survey reveals

Output per hour in the UK was 16 percentage points below the average for the rest of the major industrialised economies in 2012, the widest productivity gap since 1994, a recent report by the ONS (Office for National Statistics) has revealed.

According to the official figures provided by this survey, on an output per worker basis, UK productivity was 19 percentage points below the average for the rest of the G7 in 2012. Furthermore, the study also revealed that UK output per hour and output per worker fell in 2012 compared with 2011, which comes in direct contrast to the rest of the G7 countries, where productivity levels have actually increased.

The figures released by the ONS also show that, last year, output per hour was 2 percentage points below its level in the pre-recession year of 2007, and 15 percentage points below the counterfactual level had productivity grown at its average rate before the recession.

This compares with a productivity gap in 2012 of around 5 percentage points for the rest of the G7.

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