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%.