The true challenge is in spreading improvements more widelyby Prospect Team / May 2, 2018 / Leave a comment
Leaders from across politics, business and trade unions will today put their heads together at a major summit to tackle one of the UK’s most intractable problems: improving productivity—the amount workers produce per hour—particularly in the retail and hospitality sectors. While the Beast from the East may have provided a week-long chill to the nation’s economic output, more fundamental challenges than snow are hampering UK businesses and workers.
Poor productivity is holding back improvements in wage growth and living standards. This is bad for both firms and workers: businesses are unable to improve their performance at a time when they need to be match fit for Brexit, while more families struggle to make ends meet. Despite record employment and a recent uplift in wage growth due to falling inflation, productivity still holds the key to improving living standards across the country. Yet we appear no closer to solving the productivity puzzle. That’s why we need to look again at not just how we improve productivity across the economy, but where.