UK Works Shift to Services Leads to Productivity Drop

The study from the Office for National Statistics (ONS) suggests that is not such much that we don’t have productive industries, it is just that more of us are working in the unproductive ones.

Since the 2008 financial crisis, productivity has barely grown at all.

The ONS study now provides part of the answer to this puzzle.

Productivity is the main driver of long term economic growth and higher living standards.

The study of changes in productivity before and after the credit crunch, shows that before it struck people were moving into more productive industries and productivity was growing at 2% a year on average.

But since then there has been a shift away from working in highly productive areas like mining to less productive ones like food and drinks services.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.