UK labour productivity declines

The new data from the Office for National Statistics has revealed that over a longer time-period labour productivity growth has been lower on average than prior to the economic downturn.

Paul Marston, managing director of RateSetter Commercial Finance, said: “It is no wonder productivity has fallen over the last decade, given that the banks have cut off lending to small businesses, which are the powerhouse of the economy.

“The good news is that credible alternatives to the banks have now become significant and accessible sources of finance for small businesses and momentum is continuing to grow.”

Earnings and other labour costs growth have outpaced productivity growth, with unit labour cost growing 2.1% in the year to Q1 2017.

It was announced last week that the Scottish economy grew by 0.8% in Q1 2017.