UK productivity lower than most major economies

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First estimates for 2014 suggest that output per hour in the UK was 20% below the average for the rest of the major G7 advanced economies, the widest productivity gap since comparable estimates began in 1991, according to the Office of National Statistics (ONS).

On an output per worker basis, UK productivity was also 20% below the average for the rest of the G7 in 2014.

Across the G7 as a whole, productivity as measured by real output per hour and output per worker grew modestly in 2014, said the ONS. “Output per hour in the UK grew a little more slowly, and UK output per worker grew a little faster, than the G7 average.”

It added that output per hour was lower in all G7 countries in 2014 than would have been the case if pre-downturn trends had continued since 2007. The UK’s ‘productivity gap’ of about 18% compares with a gap of about 7% for the rest of the G7.

UK productivity in 2014 was 15% above Japan, but lower than Canada (by 4%), Italy (by 10%), France, and Germany and the US (by 32-33%).