Productivity in UK contracted at the fastest annual pace since 2014 during the second quarter according the Office for National Statistics ONS. The UK economy is amazing at creating jobs but bad at working efficiently. UK productivity has been lower over the past decade than at any time in the 20th Century according to ONS.
Output per hour worked fell 0.5 percent year on year in the second quarter.Office for National Statistics ONS
Working more efficiently is critical to sustainably lift the UK standard of living. The UK has innovative energetic people working in the economy. Why are innovative ways of doing things not being embedded in the workplace to boost UK productivity? We can change the way we do things but we need to work at it instead of doing what we have always done.
Working inefficiently is not a new thing for the UK. Many employers in UK see investing in new machinery equipment or buildings as too risky and too expensive compared to employing labour which can be cut without much cost and little risk.
The geopolitical risks and global slowdown does not make business leaders in UK confident enough to invest in their future today. However even in these difficult times there are opportunities to invest for future growth with less uncertainty.
The efficiency of the UK workforce is measured in output per worker and the UK has been working inefficiently more or less since the financial crisis. This is understandable. After you have had your fingers burned you can become more risk averse through fear you will be burned again.
However if you deploy holistic enterprise risk management decision making strategy it can help reduce uncertainty impacting negatively on business objectives and productivity. You can become more successful more quickly for longer with enterprise risk management strategy.
Output per worker in UK has for years been worse than the rest of the G7 advanced economies who we should compare the UK against. We are working harder to grow than the rest. We need to work smarter and more efficiently to grow the UK economy sustainably. Each UK business needs to work smarter and more efficiently to grow faster for longer.
Looking at UK productivity compared to other countries does not mean the UK is failing. It does mean it is working inefficiently and UK businesses need to change how they do business to be more successful quicker for longer.
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