The most recent UK productivity number was really nasty. Between January and March this year, output per worker declined almost 2 percent. It is now the fourth straight quarter of negative productivity growth. Since the decline began a year ago, UK output per worker is down 4.3 percent.
7 comments:
Get rid of all those useless private sector jobs and boost the govt payroll.
I see Nu Lab are on the case.
Good idea Kevin.
This is factories hoping for orders so keeping workers in place. But for how long?
UK productivity collapsed around the end of the Edwardian era. Since then the country has either been living on other people's wealth (US war loans) or stealing and lying to get wealth (London's City post Big Bang). Let's be serious: when have you ever encountered a 'productive' English worker in the modern era? How productive are you after over an hour on a crowded train with a stinging hangover, stress farts, and a bloated body? Like, come on!
What? Productivity's fallen? Despite all these hard-working, willing-to-take-any-jobs immigrants that have flooded the country?
I think boiling frog got it in one.
My observation also is that firms are hanging onto people not only because they would like to keep a skilled team together, but also because it is so disruptive and expensive to get rid of anyone.
This reluctance to trim staff numbers will cause some firms to go under whereas they could have survived if they had cut staffing earlier.
Could it mean that employers are not rightsizing fast enough?
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