WORKERS in the UK produce less now than they did in 2007 in what is seen as an “unprecedented absence” of growth since World War Two, official figures show.
The Office for National Statistics (ONS) said UK labour productivity fell 0.2% in the last three months of 2014 remaining “little changed” on 2013, reports BBC Business.
The economy is a major theme of this year’s general election, with some arguing the economy’s recovery from the financial crisis has been the longest and shallowest on record
The Bank of England has previously raised concerns about productivity levels.
The ONS said labour unit costs, including employee benefits, which include wages, pension contributions, bonuses and other benefits such as private healthcare, had increased by just 1% a year over the last five years.
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The figures come a day after the ONS revised fourth revised fourth-quarter GDP figures, which led to annual economic growth being uprated to 2.8% from an earlier estimate of 2.6%.
The economy is a major theme of this year’s general election, with some arguing the economy’s recovery from the financial crisis has been the longest and shallowest on record.
While the UK now has historically high levels of employment, the Bank of England has suggested many people may be underemployed.
It has previously suggested the economy may have as much as 1.5% spare capacity, meaning the economy is performing below its potential because of a lack of productivity in the workplace and underinvestment by business.
Another possible explanation for low UK workforce productivity in the years since the financial crisis is that businesses refrained from making staff redundant where possible, while freezing or cutting salaries instead.
The Bank of England says that as the economy improves, more businesses will begin to reinvest in expansion, which should lead to improved productivity.
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