UK Labor Productivity Rises for Second Straight Quarter

Labor productivity in the United Kingdom, measured as output per hour worked, rose by 0.2% in the first quarter of 2025, following a 0.7% increase in the previous period, according to a preliminary estimate.

This marked the second consecutive quarterly gain, breaking a streak of four quarters of decline or stagnation.

On an annual basis, however, productivity fell by 0.2%, following a 0.5% drop in the fourth quarter, as hours worked rose 1.5% while output increased 1.2%.

Despite the year-over-year decline, productivity remained 2.1% above pre-pandemic levels, supported by a 4.7% rise in output and a 2.5% increase in hours worked.