1.3 Labour Productivity
Why is it significant?
Growth in productivity is the most important determinant of long term GDP growth.


How does the UK perform?
We can measure labour productivity by output per worker or output per hour worked, the latter takes account of overtime, time off and part time working. Using either measure, the UK is less productive than all the other G5 countries except Japan (chart 1.3.1).
The UK continues to lag despite the fact that over the most recent economic cycle, the UK had the highest growth of GDP per worker in the G7 countries (chart 1.3.2).