UK labour productivity since the onset of the crisis — an international and historical perspective
AbstractUK labour productivity has been persistently weak since the onset of the recent financial crisis. This suggests that there is significant spare capacity within UK companies, but business surveys instead point to little spare capacity. This article aims to shed light on this puzzle by looking at cross-country and historical evidence. It finds that it has been unusual to see persistently weak labour productivity after previous financial crises in advanced economies. UK labour productivity stands out as being weak relative to historic episodes; it is also weak compared to other countries in the recent crisis. This weakness is concentrated in the energy and service sectors, suggesting the supply potential of the economy has grown more slowly than usual since the start of the crisis.
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Bibliographic InfoArticle provided by Bank of England in its journal Bank of England Quarterly Bulletin.
Volume (Year): 52 (2012)
Issue (Month): 2 ()
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Blogs review: the UKâs output, employment and productivity puzzle
by ? in Bruegel blog on 2012-10-01 13:16:14
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"Long and short-term effects of the financial crisis on labour productivity, capital and output,"
Bank of England working papers
470, Bank of England.
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