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Wages ‘would be £5,000 higher on average’ if productivity crisis were fixed

July 08, 2019 / Francis Churchill

Stagnant productivity growth may be costing UK workers an average of £5,000 a year, according to the Office for National Statistics (ONS). Alongside its latest productivity figures, the ONS estimated that if the levels of productivity growth seen before the financial crash had continued, productivity rates would now be 14 per cent higher than they were in 2008. Instead, they are 4.5 per cent lower, which in turn has restricted wage growth. The latest statistics also showed that in the first quarter of 2019, productivity dropped 0.2 per cent compared to the same period in 2018 – making it the third consecutive quarter of contraction. Katherine Kent, head of productivity at the ONS, said the figures showed a continuation of the UK’s productivity problem, with rates remaining stubbornly stagnant despite the economy’s recovery from the crash.