UK Labour Productivity drops (Q2, 2021)

Labor productivity in the UK as measured by output per hour fell by 0.5 percent on quarter in April-June 2021, following a revised 0.4 percent increase in the previous three-month period.

Hours worked rose by 5.4 percent, while gross value added increased by 4.8 percent over the same period, likely because of the easing of lockdown restrictions across the UK, leading furloughed workers (who are disproportionately employed in less productive industries) to return to work.

Output per hour grew by 3.1 percent quarter-on-year, but this comparison is with the low-point of productivity during the initial effects that the coronavirus pandemic had on the economy.

Source: Trading Economics