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.