UK productivity has flat-lined since the financial crash of 2008. Thus deviating from the previous 10 years plus trend line (Figure). Overall output fell by 6% yet employment by just 2%. As a result, productivity fell by 4%. Exactly why productivity failed to grow is hotly debated by economists. The decline is similar to other major OECD countries (with notable exceptions including the USA and Ireland).
We, therefore, thought it helpful to have a view. So in this article, we investigate why productivity flat-lined? We also pin-point lessons for UK plc, and businesses. In particular, we cover:
- What is productivity and how to measure it?
- The employed population
- The role of the service sector
- The role of the Internet
- The growth of challenger brands
- Management influences