A fall in productivity has only been prevented by widespread
job cuts, according to the Lloyds TSB and Institute of Management Services’ Report
on Productivity.
The productivity growth rate has been static or in decline
for six months and the growth in services employment is at its weakest since
the current cycle began in March 1999.
Manufacturing productivity growth has again exceeded that in
the service sector but only by 0.3 of an index point.
Harry Downes, chairman
of the Institute of Management Services, said, “Productivity growth is close to
zero and extremely fragile. It looks likely that growth can only now remain
positive through a further continuing loss of jobs. Data in this report
supports the view that a recession is an increasing reality.”
The Lloyds TSB IMS
productivity Index is derived from data from 1,400 UK manufacturing and service
sector companies.
By Katie Hawkins
