Productivity threat to recovery

Chris Dillow

Chris Dillow

A slump in productivity growth could jeopardise the UK's recovery. Figures this week showed that a net 345,000 people moved into work in the three months to April, the biggest rise since records began in 1971. This means employment has rising even faster than output, implying a drop in productivity. The ONS estimates that the total hours worked rose 1.5 per cent in the three months to April, but the NIESR estimates that GDP grew by only 1.1 per cent then.

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