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Economic news
15.08.2024

UK labor productivity grew moderately in the second quarter

Data published by the Office for National Statistics (ONS) showed that labor productivity (output per hour worked) increased by 0.3% in the second quarter after falling by 0.2% in the first quarter (revised from -0.3%). Economists had expected a 0.3% decrease. Meanwhile, in annual terms, labor productivity fell by 0.1%. Output per hour worked decreased because hours worked increased more (1.0%) than gross value added (GVA) (0.9%) in the same period. Output per hour worked was 2.1% above its pre-coronavirus pandemic levels (2019 average level) in the second quarter.

The ONS also said that output per worker was 1.1% above its equivalent in the second quarter of 2023. This is because GVA increased by 0.9%, while the number of workers, as measured by the LFS (labor force survey), fell by minus 0.2%. Output per worker was 1.9% above its pre-coronavirus level. This was caused by the growth in GVA of 2.8% being higher than the growth in the LFS number of workers of 0.8%.

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