G7 COUNTRIES are becoming more productive while the UK lags behind, according to worrying figures released yesterday by the Office for National Statistics (ONS).
Workers in Britain are still less productive than they were before the recession, while US employee efficiency has gone through the roof since 2008. Competitor countries in Europe also outperformed the UK, with Italy, France and Germany making a more significant recovery in this regard.
Though employment levels have suffered less than was the case in previous recessions, the country’s work rate is still unimpressive.
Earlier in the year, a report by the Institute for Fiscal Studies drew attention to a severe drop in business investment impairing private sector productivity, while the public sector had an upswing.
Despite this lack of improvement, UK consumers have boosted their spending by more than other countries since the end of the financial crisis. Private financial consumption has grown by 1.5 per cent, in comparison to much smaller rises of less than one per cent for Germany, France, Italy and Japan.
The ONS identified above-target inflation as the major reason that British spending had risen more than other countries.
Since 2008, consumer price inflation has averaged 3.3 per cent, higher than any other G7 country, pushing prices up for shoppers.
The UK’s performance in terms of GDP growth since 2008 was in the middle of the pack, along with France. Germany, Canada and the United States were the G7 countries with the most impressive performances, while Italy’s economy has still yet to see any recovery.