Why is UK output per hour so low?

cepheus

Productivity – the number one economic issue missing from the British election campaign

The reasons why growth has been largely ignored are mainly political. The effects of policies to raise productivity require investment, take many years and are hard to measure. Spending cuts are easier to point to as a “quick win”.

The Conservatives fear that mentioning productivity undermines their narrative of the UK as an unmitigated success story. It is an implicit admission that the economy is not as strong as they have claimed.

Labour, meanwhile, has failed to defend its pre-crisis performance, which our research has shown to be good in many respects. This has allowed the “mess left by Labour” idea to become conventional wisdom.

https://theconversation.com/productivity-the-number-one-economic-issue-missing-from-the-british-election-campaign-40424

Anna Valero
Research Economist - Productivity and Innovation at London School of Economics and Political Science

John Van Reenen
Director, Centre for Economic Performance at London School of Economics and Political Science

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CLAPTON

cepheus wrote: »

https://theconversation.com/productivity-the-number-one-economic-issue-missing-from-the-british-election-campaign-40424

Anna Valero
Research Economist - Productivity and Innovation at London School of Economics and Political Science

John Van Reenen
Director, Centre for Economic Performance at London School of Economics and Political Science

REPUBLISH THIS ARTICLE

We believe in the free flow of information. We use a Creative Commons Attribution NoDerivatives license, so you can republish our articles for free, online or in print.

a political article devoid of any economic analysis

Conrad

If only naive lefties ran the nation, productivity would magically improve eh!

cepheus

Today the Euro Stats Agency stated the UK has the highest Underemployment level in the EU. You won't have any of the pro Tory channels like the BBC reporting it, since it destroys 'the Tories are good for the economy' narrative.



Zero-hours contracts just the tip of the iceberg for low-paid and insecure jobs

http://touchstoneblog.org.uk/2015/04/zero-hours-contracts-just-the-tip-of-the-iceberg-for-low-paid-and-insecure-jobs/

CLAPTON

cepheus wrote: »

Today the Euro Stats Agency stated the UK has the highest Underemployment level in the EU. You won't have any of the pro Tory channels like the BBC reporting it, since it destroys 'the Tories are good for the economy' narrative.



Zero-hours contracts just the tip of the iceberg for low-paid and insecure jobs

http://touchstoneblog.org.uk/2015/04/zero-hours-contracts-just-the-tip-of-the-iceberg-for-low-paid-and-insecure-jobs/

Is that because the EU have exported their unemployed to the UK?

your link doesn't seem to be to Euro Stats Agency

audigex

Because too many of us work long hours.

It's been proven again and again that working more than 35-40 hours a week reduces productivity: not just per hour, but overall. Someone working 50 hours produces less useful output than someone working 40. It's not just that the person working 50 doesn't produce 25% more work, it's that they actually produce LESS.

Until we get our heads around that and stop flogging ourselves and our staff into the ground, this kind of made up statistic will sit around.

And as mentioned, measuring GDP against hours is a nonsense. This kind of statistic only makes sense if performed on a per-company and per-role level, but even then it's a nonsense metric.

CLAPTON

audigex wrote: »

Because too many of us work long hours.

It's been proven again and again that working more than 35-40 hours a week reduces productivity: not just per hour, but overall. Someone working 50 hours produces less useful output than someone working 40. It's not just that the person working 50 doesn't produce 25% more work, it's that they actually produce LESS.

Until we get our heads around that and stop flogging ourselves and our staff into the ground, this kind of made up statistic will sit around.

And as mentioned, measuring GDP against hours is a nonsense. This kind of statistic only makes sense if performed on a per-company and per-role level, but even then it's a nonsense metric.

no evidence for such nonsense
just junk reporting by people who don't actually do any work but get paid generously from taxpayer handouts.


not many self made entrepreneurs boast they succeeded by only working a few hours a day.

antrobus

cepheus wrote: »

Today the Euro Stats Agency stated the UK has the highest Underemployment level in the EU. You won't have any of the pro Tory channels like the BBC reporting it, since it destroys 'the Tories are good for the economy' narrative....

That might be because the Eurostat Labour Force Survey says no such thing at all.

The press release can be read here
http://ec.europa.eu/eurostat/documents/2995521/6800423/3-27042015-AP-EN.pdf/08a0ac51-c63d-44d0-ad29-248127fd01c3

Whilst Eurostat are happy to announce that the "Largest shares of underemployed part -time workers" are to be found in "Greece, Cyprus and Spain", it doesn't actually mention the UK to all.

cepheus wrote: »

...Zero-hours contracts just the tip of the iceberg for low-paid and insecure jobs

http://touchstoneblog.org.uk/2015/04/zero-hours-contracts-just-the-tip-of-the-iceberg-for-low-paid-and-insecure-jobs/

The blog states that;

Underemployment overall remains high in the UK. New data published today by Eurostat, the statistical office of the EU, has placed the UK in 23rd place out of 28 for its record on underemployment. The new figures shows 5.9 per cent of UK workers are underemployed, 31 per cent higher than the EU average.

The same data for 2010 show that 5.4% of UK workers were underemployed, which was 50% higher than the EU average and placed the UK in equal last place.

http://ec.europa.eu/eurostat/documents/3433488/5579720/KS-SF-11-056-EN.PDF/f271ad47-a1b3-4350-92a0-600eacd18fea

One would therefore have to conclude that the UK's performance regarding underemployment over the years 2010-14 has been relatively better than the EU average, and much better than, say France, where the number has shot up over the same period from 4.3% to 6.1%

Generali

cepheus wrote: »

Today the Euro Stats Agency stated the UK has the highest Underemployment level in the EU. You won't have any of the pro Tory channels like the BBC reporting it, since it destroys 'the Tories are good for the economy' narrative.



Zero-hours contracts just the tip of the iceberg for low-paid and insecure jobs

http://touchstoneblog.org.uk/2015/04/zero-hours-contracts-just-the-tip-of-the-iceberg-for-low-paid-and-insecure-jobs/

Have you actually read the 'analysis'.

To get to the number of underemployed people they've added together the number on zero hours contracts (the majority of whom surveys tell us are happy with their contractual situation) to the number of people working fewer than 19 hours a week.

That is what we economists called 'utter, utter rubbish'. By this measure my sister, happily topping up the family income with a few hours work a week as a part time teacher, is underemployed. The simple fact is that their house is owned outright and her husband earns enough that she has the ability to raise her child herself which is what she wants to do.

No matter what the TUC might think she is not underemployed.

It's rubbish from start to finish.

antrobus

Generali wrote: »

Have you actually read the 'analysis'.
....

What do you mean has he read the 'analysis'?

Don't you know by now that cepehus never actually reads the content of his links? He only ever looks at the headline.:)