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Our economy’s getting bigger, but not better

"Self-congratulation over Britain’s growth figures masks a crippling productivity problem.

Amid all the hoopla around a fast-recovering economy – further fuelled this week by news that even business investment, hitherto the missing ingredient in Britain’s apparent economic miracle, is starting to revive – there is one fairly obvious fly in the ointment. Productivity relative to other major economies is not only very low, but is getting worse.

According to the Office for National Statistics, output per man-hour in the UK is 21 percentage points below the G7 average – the biggest productivity gap since 1992. The country by country comparison is even more alarming. Britain is more than 30 percentage points less productive than Germany, France and the United States. What these figures essentially mean is that on average, every hour worked in Britain will buy approximately a third less in goods and services than it does there....


Yet the bottom line is that regardless of record levels of job creation and the fastest growth in Europe, Britain is lagging badly behind. Relative to much of the rest of the industrialised world, we are becoming a low-productivity, low-wage economy."

http://www.telegraph.co.uk/finance/economics/10665289/Our-economys-getting-bigger-but-not-better.html


Unemployment continues to fall all is well.
"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    "Self-congratulation over Britain’s growth figures masks a crippling productivity problem.

    Amid all the hoopla around a fast-recovering economy – further fuelled this week by news that even business investment, hitherto the missing ingredient in Britain’s apparent economic miracle, is starting to revive – there is one fairly obvious fly in the ointment. Productivity relative to other major economies is not only very low, but is getting worse.

    According to the Office for National Statistics, output per man-hour in the UK is 21 percentage points below the G7 average – the biggest productivity gap since 1992. The country by country comparison is even more alarming. Britain is more than 30 percentage points less productive than Germany, France and the United States. What these figures essentially mean is that on average, every hour worked in Britain will buy approximately a third less in goods and services than it does there....


    Yet the bottom line is that regardless of record levels of job creation and the fastest growth in Europe, Britain is lagging badly behind. Relative to much of the rest of the industrialised world, we are becoming a low-productivity, low-wage economy."

    http://www.telegraph.co.uk/finance/economics/10665289/Our-economys-getting-bigger-but-not-better.html


    Unemployment continues to fall all is well.

    how surprising Grizzly sees things are awful and getting worse.
    EU tariff on agricultual product 12.2%
    some dairy products 42.1% cloths 11.4%
    EU Clinical Trials Directive stops medical advances
  • SailorSam
    SailorSam Posts: 22,754 Forumite
    10,000 Posts Combo Breaker
    If things carry on as they are doing until we have an election next year, i wonder how many people will look at all these statistics showing how much better off the Country is, and how many extra are in work and off benefits, and think ....... is it really like that ? Or will people look at how they are ? Have they got proper jobs, and have they got more to spend in their pockets.
    Liverpool is one of the wonders of Britain,
    What it may grow to in time, I know not what.

    Daniel Defoe: 1725.
  • lvader
    lvader Posts: 2,579 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Isn't that simply a result of higher employment growth than GDP, not really a problem short term, it's actually encoraging. By the way the UK has had more productivity growth than Germany since 1990.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    CLAPTON wrote: »
    how surprising Grizzly sees things are awful and getting worse.

    I didn't write the article.

    Unemployment continues to fall. What is awful about that?;)
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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