Productivity growth strongest since GFC

Thrugelmir

Finally some 10 years later the first signs of normality.

The UK has seen the strongest two quarters of productivity growth since the recession of 2008, according to the latest data.

Output per hour rose 0.8% in the three months to December, the Office for National Statistics said. It follows growth of 0.9% in the previous period.

There was also a better than expected rise in wages. Excluding bonuses, earnings rose by 2.5% year-on-year.

However, unemployment edged higher, but still remains low at 4.4%.

The growth in productivity - as measured by the amount of work produced per working hour - will provide encouragement to policy makers who have wrestled with the challenge of low productivity growth since the financial crisis.

http://www.bbc.co.uk/news/business-43140646

StevieJ

May be caused by a reduction in EU workers?

Numbers of seasonal workers coming to work on British farms have dropped 17%, leaving some businesses critically short of people to harvest fruit and veg, a new survey by the NFU shows.

https://www.nfuonline.com/news/latest-news/drop-in-seasonal-workers-leaves-some-farms-critically-short/

Thrugelmir

StevieJ wrote: »

May be caused by a reduction in EU workers?

Are you suggesting that they don't work very hard?

kabayiri

Re: productivity, did anyone see the BBC article on automated salmon farming in Norway?

An ex-colleague worked on the laser system featured in the piece, and he is justifiably proud. It's nice to see ambitious forward looking companies like the one featured.

Thrugelmir

Tell us more.:beer:

HAMISH_MCTAVISH

This so called 'growth in productivity' doesn't appear to be much to celebrate....

the number of people out of work in Britain rose at the fastest rate in almost five years.

Fuelled by an increase in unemployment among young people under the age of 24, the number of jobless rose by 46,000

https://www.theguardian.com/business/2018/feb/21/uk-unemployment-rises-at-fastest-rate-in-almost-five-years

Perhaps it was all those 'ambitious forward looking companies' that sacked forty six thousand people....

And meanwhile, back in the real world where job losses = bad, layoffs arrive in Brexit Britain...

Since October, 650 have lost their jobs at the factory where Vauxhall Motors churns out Astra hatchbacks. The remaining 1,200 staff worry the plant may close if the U.K. loses tariff-free access to Europe. Across the River Mersey from Vauxhall's factory, Jaguar Land Rover is planning production cuts.

https://www.bloomberg.com/news/articles/2018-02-16/layoffs-arrive-in-brexit-britain-and-auto-workers-are-up-first

Never mind though, at least we're 'taking back control'.

GreatApe

You're too pessimistic Hamish

As you know there are always many businesses that go bust and many people that get fired

You are just highlighting a tiny part of the gross movements. More important is the net figures and the 6+ month unemployment and the UK is doing well by any reasonable analysis of the economy

Brexit will probably be a small net positive it was never going to be a big net positive or a big net negative.

Malthusian

Hamish beat me to it. The most obvious explanation for an increase in productivity is a rise in unemployment. The least productive people get sacked first.

National productivity figures are meaningless, about as useful as "distance run" stats in football. The best way to increase productivity is for the entire population of the UK to quit their jobs except for the chief executive of BP.

Thrugelmir

Malthusian wrote: »

National productivity figures are meaningless, about as useful as "distance run" stats in football. The best way to increase productivity is for the entire population of the UK to quit their jobs except for the chief executive of BP.

Alternatively ban the use of mobile phones in the workplace during working hours. :cool: