UK Think Tank Says Productivity Still Not Fully Recovered

U.K. workers are still far less productive than before the financial crisis of six years ago even though the country’s economic recovery is “entrenched”, a leading think tank said on Tuesday.

In a quarterly report, the National Institute of Economic and Social Research (NIESR) said labor productivity—a measure of the amount of goods and services produced by one hour of labor—was still around 4.5 percent below the pre-crisis peak of 2007.
“Productivity performance, therefore, remains abysmal,” said NIESR in the report, which was published on Tuesday.

The Institute forecast that pre-crisis productivity levels would be regained, but not before the latter half of 2017.

“Given the continuing puzzle about the causes of poor productivity performance, large uncertainties remain,” it said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza