UK Productivity Plunges in Quarter to Sept. Ahead of Wound Up of Furlough Scheme

close-up shot a single wrench on some metal tools

Productivity in the United Kingdom dropped in the quarter to September as the government’s furlough program came to an end.

Source: Office for National Statistics

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Data from the Office for National Statistics (ONS) indicated that output per hour worked dropped by 1.4% quarter-on-quarter but was 1.1% above the average level before the pandemic in 2019.

Output per worker was 0.6%, below pre-pandemic levels, despite a rise of 0.3% in the period.

ONS stated the divergence between productivity measures affected by the furlough program is shrinking and could be projected to close further in Q4 from October to December.

Earlier, the government gave workers 80% of their wages, but the rule change implied that firms contributed 10% of that from July, further rising to 20% in August.

Public service productivity was 8.1% lower than the 2019 average level, as the COVID-19 pandemic growth in inputs of 18.6% topped growth in output of 8.9%.


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