Friday, March 31, 2006
Productivity problem - or revival?
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

The Office for National Statistics, in its release on the latest productivity figures, chose to concentrate on the fact that it rose in the fourth quarter of 2005. The performance for the whole of last year was, however, poor, up by only 0.8% on an output-per-worker basis, 0.6% measured by output-per-hour.

In fact, the only reason productivity perked up in the fourth quarter was because employment fell. The chancellor needs a strong rate of trend growth to make the public finances add up. The productivity figures suggest he will struggle to achieve it.


"Do not put your faith in what statistics say until you have carefully considered what they do not say." ~William W. Watt

I won't even start quoting Benjamin Disraeli on statistics and lies.

Posted by: Paul Owen at March 31, 2006 01:28 PM
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