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Lack of growth in productivity raises concerns

The Office for National Statistics has released data which shows that UK labour productivity fell 0.2% in the last three months of 2014, despite apparent economic recovery. The productivity of the UK workforce also remains lower than in 2007, prior to the recession, a statistic which has led to the Bank of England raising concerns about levels of productivity. This follows the ONS’ revision of fourth quarter GDP figures, which led to the uprated of annual economic growth to 2.8% from the previous estimate of 2.6%. The Bank of England has suggested that this lack of productivity is down to ‘underemployment’, whereby staff are unfulfilled in some way – whether that be because they are overqualified, have had their salaries cut or frozen in the recession, or are in part time work and desire full time employment. However, it countered this suggestion by stating that as the economy continues to improve, businesses will reinvest in expansion, leading to extra jobs and more work. Are you struggling to tackle unproductivity in your business? RVR Management specialise in helping businesses to overcome common problems such as productivity – we offer business advice and support in all key areas, whether it be strategic planning, business development or business recovery. Call us on 01604 492623 for a free consultation on how we could help your business to achieve the results you want.