20 June 2016
It will not have escaped your notice that improving productivity is one of the Government’s top priorities, says Dawn Nolan. As economists the world over crunch the latest data and debate the intricacies of the productivity challenge and so-called “puzzle”, we are left to ponder: why, when UK employment has increased, has workers’ output not improved at a similar rate? Despite trying to fathom out why productivity is so low, “there’s no single explanation or agreement on which explanations are more important than others”, confirms Mark Beatson, Chief Economist at the CIPD. In reality there is no simple solution, otherwise we would have solved it by now.