Wednesday, 19 November 2008

UK labour productivity comes crashing down

Housing prices, sterling, exports, and now labour productivity - another falling index, screaming out crisis for the UK economy.

During the second quarter of 2008, labour productivity was almost zero. Given that wages are rising, this must mean that labour costs are going up. That is always a precursor to a labour shakeout. Unemployment is going to rise and as it does, it will bring heartache and misery.


Boy on a bike said...

You've used the same UK export markeet share chart twice. I think this post is supposed to have a productivity chart.

John McClane said...

UK labour productivity comes crashing down.

Other than that, as you say, it will all come down. Not one one stone shall stand upon another.

Alice Cook said...

boy on a bike,

Thanks for pointing that out. I have now posted the right chart.


Anonymous said...

UK 'productivity' has never been great. How could it be? When so many Brit workers spend their days in dreadful commutes, nursing hangovers, and spending every minute of every day screwing each other over and never cooperating on anything. That's not efficient.