UK still way behind in productivity compared to main rivals

workers remain much less productive than their counterparts in the US,
and France, latest statistics show.

per hour worked – the most commonly used measure of labour productivity – is
almost 40 per cent below that in the US,
according to a report from by the Economic and Social Research Council (ESRC).

productivity gap with France
and Germany
is around 20 per cent.

at output per worker puts the UK
in a better light, with insignificant differences relative to Germany.

while UK
workers produce much the same output as German workers, they work much longer
hours to do so – 16 per cent longer.

report explains the persistent productivity gap by saying that the two big
continental European economies have more capital invested per worker.

in France
and Germany
are also more skilled than those in the UK.

in investment in physical and human capital account for a small proportion of
the productivity gap with the US.

of that gap is due to different ways of working – how firms are organised and
how they use technology, the report suggests.

By Johann Tasker






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