---

Productivity

Answer

The Government use the international productivity comparisons produced by the Office for National Statistics (ONS). The latest ONS release on 23 February 2006 (available at www.statistics.gov.uk) showed that, on the output per worker basis, the productivity gap between the UK and Germany closed in 2002. This means that, on average, a UK worker now produces as much output as a German worker. There has been good progress from 1995 to 2004 in closing the productivity gap with France and Germany, on both the output per worker and output per hour worked bases for measuring productivity. The UK is also the only country in the G7 to have matched the impressive productivity growth rates of the US over this period. Improving UK productivity performance still further is key to the UK’s response to globalisation, as competitive pressures on UK firms intensify. Moreover, productivity gains are likely to be the main source for continued improvement in UK living standards. The Government will therefore maintain their intense focus on productivity, with policies working across the five drivers of productivity: investment, innovation, skills, enterprise and competition.

Table 1: GDP per worker
Year	France	Germany	Japan	UK	USA	G7	G7 excluding UK
1995	123	111	97	100	130	117	119
1996	122	110	96	100	129	116	118
1997	121	107	94	100	128	115	116
1998	121	105	91	100	128	114	115
1999	120	105	90	100	131	115	116
2000	118	104	90	100	128	113	115
2001	117	102	89	100	126	111	112
2002	112	99	86	100	122	108	109
2003	112	100	88	100	124	110	110
2004	111	100	89	100	127	111	111
Note: index, UK=100 Source: Office for National Statistics

Table 2: GDP per hour worked
Year	France	Germany	Japan	UK	USA	G7	G7 excluding UK
1995	137	126	89	100	120	114	115
1996	135	126	88	100	120	114	115
1997	135	124	87	100	118	112	113
1998	135	121	85	100	118	111	112
1999	133	122	85	100	120	112	113
2000	134	121	85	100	117	111	111
2001	135	119	84	100	116	110	111
2002	131	116	81	100	112	106	106
2003	131	116	82	100	114	107	107
2004	129	116	83	100	116	108	108
Note: index, UK=100 Source: Office for National Statistics

These tables show how various countries’ productivity levels relate to the UK level in each year. For example, French productivity in output per worker terms was 123 per cent. of the UK level in 1995 and 111 per cent. in 2004, implying that productivity growth over the period was higher in the UK than in France.

Secondary information

Type

Written question

Reference

681 c4-6WA; 5069

Session

2005-06

Related items

Budget Resolutions and Economic Situation
Tuesday, 28 March 2006
Proceeding contributions
House of Commons

Subjects

Germany Productivity

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk