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

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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