Britons' disposable income will be driven up from an increase in productivity over the next five years, but employment growth will not follow the same upward trend, according to research out today.
Economists at Oxford Economics are predicting a dramatic turnaround with significant improvements forecast between 2015 and 2020.
Productivity will rise by 10.7 per cent, which will cause real personal disposable incomes to rise by 12.4 per cent, the group said today, in a report commissioned by the 2016 International Festival for Business (IFB). This compares to 3.2 per cent productivity growth over the last five years, and disposable income growth of 2.7 per cent in total.
However, Oxford Economics warned that the rate of employment growth will reduce by 50 per cent relative to the last five years.
The IFB is a three week networking and deal-making event which will be held in Liverpool next year.
Max Steinberg, IFB chair, said: “It’s clear the economic recovery is about to turn another corner. London is central to our economy, but this report makes it clear that Britain has productive and creative hotspots beyond the City.”