Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

AutomationLatest NewsHR strategySkills shortagesPay & benefits

Productivity continues to be outpaced by wage growth

by Rob Moss 8 Jan 2020
by Rob Moss 8 Jan 2020 Output per hour in manufacturing shrank by 1.9%. Photo: Shutterstock
Output per hour in manufacturing shrank by 1.9%. Photo: Shutterstock

The Office for National Statistics has published the latest productivity figures for the UK showing that output per hour rose only 0.1% in the third quarter of last year, compared to the same period in 2018.

Because earnings growth is outstripping output, it means the cost of labour has risen by 3.6%, leading to calls for employers to invest in skills and technology.

Gerwyn Davies, senior labour market adviser at the CIPD, the professional body for HR and people development, said: “These latest figures offer further evidence that stronger earnings growth isn’t encouraging employers to invest in higher levels of productivity.

“Political uncertainty may have cast a shadow over some UK businesses’ confidence levels and held them back from investing over the recent past.  However, with some of that uncertainty now removed, employers should be looking to improve output through greater investment in skills and technology, and not through intensifying work.”

!function(e,i,n,s){var t=”InfogramEmbeds”,d=e.getElementsByTagName(“script”)[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(“script”);o.async=1,o.id=n,o.src=”https://e.infogram.com/js/dist/embed-loader-min.js”,d.parentNode.insertBefore(o,d)}}(document,0,”infogram-async”);

Davies added: “The introduction of new migration restrictions alongside another generous uprating in the national living wage later this year are compelling reasons for employers to make this a priority. A failure to do this may result in job cuts in some cases.

“And while the government’s commitment to increasing investment in infrastructure is welcome, more business support is needed for small firms to help them make the right investment, particularly in how they manage and develop their staff.”

The service sector in the UK recorded an increase in output per hour of 0.1%, while manufacturing saw a 1.9% decrease. Productivity in public services fell by 0.2%.

Last month, the Royal Statistical Society crowned the estimated average annual increase of 0.3% in UK productivity in the decade since the financial crisis the “Statistic of the decade”, reflecting the significance of the unusual weakness observed since the 2008 economic downturn.

RSS executive director Hetan Shah, said: “Most people won’t have paid attention to a dull sounding number on productivity, but we think it is probably the most important UK statistic of the last decade as productivity is the single biggest key to our shared prosperity.

“There’s a strong argument to say that if the UK could lift its productivity we would be less out of sorts with ourselves as a nation, as we would have more money in our pockets and more money for government to spend on public services. With the election over, the RSS hopes that by naming 0.3% as our UK Statistic of the Decade we can draw the new government’s attention to solving this critical issue.”

Commenting on today’s ONS figures, Matt Weston, managing director of recruitment firm Robert Half UK, said: “Employers can expect to be at the receiving end of promotion and pay rise requests while top professionals will be fielding multiple job offers.

“In order to win the war for talent, employers will need to consider a flexible hiring strategy, looking at both permanent and temporary staff to bring a range of skills and experience to the team and help tackle any productivity challenges.

“The onus is also on employers to provide a competitive remuneration package that is attractive to staff. That said, employees are also receptive to other benefits such as flexible working, health and wellbeing perks and training opportunities, all of which should be considered as part of any offer to retain or attract a talented team.”

Latest HR job opportunities on Personnel Today

Browse more human resources jobs

Rob Moss
Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. He specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts, most recently on the challenges created by the coronavirus pandemic. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and electrical markets in Asia and the Middle East.

previous post
Gig economy ad banned for “harmful gender stereotypes”
next post
Why technology can’t save a failing recruitment strategy

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

How employers can support women during the HRT...

13 May 2022

Employers see hybrid working productivity gains, but want...

26 Apr 2022

Learning and talent management: how a united strategy...

2 Apr 2022

Dozens of firms participate in four-day week trial

18 Jan 2022

Flexible Working Taskforce offers hybrid working advice

3 Dec 2021

Hybrid working, attrition and culture: The role of...

2 Dec 2021

Encouraging greater willpower will reduce productivity impact of...

29 Nov 2021

Hybrid working: How to develop a truly agile...

19 Nov 2021

Invest in leadership and learning to tackle productivity...

15 Nov 2021

Shame about childcare responsibilities affects productivity, study finds

10 Nov 2021
  • Apprenticeships are the solution to your recruitment problems PROMOTED | Apprenticeships have the pulling power...Read more
  • What it really means to be mentally fit PROMOTED | What is mental fitness...Read more
  • How music can help to ease anxiety at work PROMOTED | A lot has happened since March 2020, hasn’t it?...Read more
  • Why now is the time to plug the unhealthy gap PROMOTED | We’ve all heard the term ‘health is wealth’...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Shared parental leave
    • Redundancy
    • Maternity & Paternity
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+