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UK Productivity Slips as Furlough Eases

January 11, 2022 by Forex Winner Leave a Comment

UK Productivity Slips as Furlough Eases

Source: Office for National Statistics

Productivity in the United Kingdom fell in the third quarter, marking the lowest level for the year as the government’s furlough program narrowed during the period.

  • Output per hour worked declined by 1.4% quarter-on-quarter to 101.1 in the third quarter, hitting the lowest level in 2020. This is 1.1% higher than the 2019 average.
  • The ONS attributed the decline to the easing of the furlough scheme in the quarter and is expected to close in the fourth quarter.
  • Output per worker stood at 99.4, up from 99.1 the previous quarter and 93.6 the previous year. This is 0.6% lower than pre-pandemic levels.
  • Multifactor productivity jumped 1.5% from the 2019 average level, even as lower capital services and employment dragged market sector output by 3.4%.
  • Public service productivity fell 8.1% from the 2019 average level but was up 0.6% from the previous quarter as inputs fell for the first time since the COVID-19 pandemic.

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