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<p>The most up to date productivity data for 2012 are in the table.</p><p> </p><p><strong>Current
Price Productivity, 2012, G7 countries, Index UK=100</strong></p><p> </p><table><tbody><tr><td><p><strong><em>
</em></strong></p></td><td><p><strong><em>Japan</em></strong></p></td><td><p><strong><em>Germany</em></strong></p></td><td><p><strong><em>Canada</em></strong></p></td><td><p><strong><em>Italy</em></strong></p></td><td><p><strong><em>France</em></strong></p></td><td><p><strong><em>US</em></strong></p></td><td><p><strong><em>UK</em></strong></p></td><td><p><strong><em>G7
excl. UK</em></strong></p></td></tr><tr><td><p><strong>GDP per worker</strong></p></td><td><p>90</p></td><td><p>108</p></td><td><p>104</p></td><td><p>116</p></td><td><p>115</p></td><td><p>140</p></td><td><p>100</p></td><td><p>120</p></td></tr><tr><td><p><strong>GDP
per hour worked</strong></p></td><td><p>85</p></td><td><p>129</p></td><td><p>100</p></td><td><p>109</p></td><td><p>128</p></td><td><p>130</p></td><td><p>100</p></td><td><p>117</p></td></tr></tbody></table><p>
</p><p>Source: International Comparisons of Productivity, First Estimates for 2013,
ONS (Oct 2014)</p><p> </p><p>http://www.ons.gov.uk/ons/rel/icp/international-comparisons-of-productivity/2013---first-estimates/index.html</p><p>
</p><p>Analysis undertaken by BIS (2012) to support Lord Heseltine’s Review of UK
Competitiveness examined UK productivity in comparison to France, Germany and the
USA. An analysis of productivity across all G7 countries has not yet been completed.
The full analysis can be found <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/34647/12-1207-benchmarking-uk-competitiveness-in-the-global-economy.pdf"
target="_blank">here</a> but the main findings were:</p><p> </p><p>The analysis decomposed
the productivity gap (measured by output per hour worked) into two components:</p><p>
</p><ul><li>Sector productivity effect – the share of the gap arising due to productivity
in a given sector being higher in another country than in the UK.</li><li>Sector mix
effect – the share of the gap arising due to employment in another country being more
concentrated in high productivity sectors than in the UK.</li></ul><p> </p><p>When
UK productivity is compared to France, Germany and the USA, the sector productivity
effect in each of the comparator countries fully explains the gap. As such, higher
productivity across almost all sectors in each of these economies accounts for the
entirety of their lead over the UK. In fact, the UK’s favourable sector mix went some
way towards reducing the gap, particularly against France.</p><p> </p><p>Naturally,
the factors driving the gap vary by country. However, at the aggregate level, the
UK tends to have lower capital per head than France and Germany and a less efficient
use of inputs in production (Total Factor Productivity) than the USA (<a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32101/10-1213-economic-growth.pdf"
target="_blank">BIS, 2010</a>). There is also a (smaller) gap between the UK and its
major competitors in terms of skills. This is generally characterised as a gap in
intermediate skills with France and Germany, and a gap in higher level skills relative
to the USA.</p><p> </p><p><strong>Plans to Improve UK Productivity</strong></p><p>
</p><p>Government policy focuses on delivering growth which in turn depends on productivity
in the longer term. In this sense, the majority of longer run Government economic
policy is ultimately about raising productivity.</p><p> </p><p>The Government’s industrial
strategy and ‘The Plan for Growth’ are creating the right environment for businesses
to invest and grow. This will continue to support UK long-term productivity growth.</p><p>
</p><p><strong>Data Revisions</strong></p><p> </p><p>Recent changes to national accounts
methodology have slightly reduced the productivity gap between the UK and other leading
G7 economies. Data for 2012 were revised and are provided in the table above. In case
it is of interest, the most recent data for 2013 is also included in the table below.
A full decomposition of the productivity gap has not yet been undertaken using the
revised data.</p><p> </p><p><strong>Current Price Productivity, 2013, G7 countries,
Index UK=100</strong></p><p> </p><table><tbody><tr><td><p><strong><em> </em></strong></p></td><td><p><strong><em>Japan</em></strong></p></td><td><p><strong><em>Germany</em></strong></p></td><td><p><strong><em>Canada</em></strong></p></td><td><p><strong><em>Italy</em></strong></p></td><td><p><strong><em>France</em></strong></p></td><td><p><strong><em>US</em></strong></p></td><td><p><strong><em>UK</em></strong></p></td><td><p><strong><em>G7
excl. UK</em></strong></p></td></tr><tr><td><p><strong>GDP per worker</strong></p></td><td><p>88</p></td><td><p>107</p></td><td><p>103</p></td><td><p>115</p></td><td><p>114</p></td><td><p>139</p></td><td><p>100</p></td><td><p>119</p></td></tr><tr><td><p><strong>GDP
per hour worked</strong></p></td><td><p>85</p></td><td><p>129</p></td><td><p>101</p></td><td><p>109</p></td><td><p>128</p></td><td><p>130</p></td><td><p>100</p></td><td><p>117</p></td></tr></tbody></table><p>
</p><p>Source: International Comparisons of Productivity, First Estimates for 2013,
ONS (Oct 2014)</p><p> </p><p>http://www.ons.gov.uk/ons/rel/icp/international-comparisons-of-productivity/2013---first-estimates/index.html</p><p>
</p><p> </p><p> </p><p>References</p><p> </p><p>BIS (2010) Economic Growth, BIS Economics
Paper No. 9</p><p> </p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32101/10-1213-economic-growth.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32101/10-1213-economic-growth.pdf</a></p><p>
</p><p>BIS (2012) Benchmarking UK Competitiveness in the Global Economy, BIS Economics
Paper No. 19</p><p> </p><p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/34647/12-1207-benchmarking-uk-competitiveness-in-the-global-economy.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/34647/12-1207-benchmarking-uk-competitiveness-in-the-global-economy.pdf</a></p><p>
</p><p> </p><p> </p>
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