Productivity puzzle revisited: what the latest official data tells us about the UK’s biggest economic issue - About the Office for National Statistics
15 October 2021
One of the main drivers of improved labour composition over the past decade is the increase in the number of workers with university degrees. [...] The finest of the aggregations is similar to the intermediate aggregation, suggesting that there is usually little difference in the level of productivity of industry “divisions” within each industry “section”. [...] As such, in the decade between the financial crisis and pandemic the allocation effect stopped boosting productivity to the same degree as in the decade before the financial crisis. [...] Industry slowdowns Turning to industries with slowing productivity growth since the financial crisis, Figure 8 shows the contributions of high-level industry aggregates to productivity growth comparing the decade before the financial crisis, and the decade since10. [...] Figure 13 shows a scatter plot of the average annual growth rates in productivity by detailed industries, in the decade before the financial crisis and the decade thereafter.