UK Productivity Falls in Q2

Labor productivity in the United Kingdom, measured as output per hour worked, rose by 0.7% in the third quarter of 2025, following a 0.6% decrease in the previous period, according to a preliminary estimate. On an annual basis, productivity rose by 1.1%, following a 0.5% decrease in the second quarter, as GVA increased more than hours worked (1.3% and 0.2% respectively). Output per hour worked was 3.1% higher, compared with pre-coronavirus (COVID-19) pandemic levels (2019 average), while output per worker was 2.1% higher compared with the same period.

Labor productivity in the United Kingdom, measured as output per hour worked, fell by 0.6% in the second quarter of 2025, following a 0.3% increase in the previous period, according to a preliminary estimate. On an annual basis, productivity declined by 0.8%, following a 0.2% decrease in the first quarter, as hours worked increased more than GVA (2% and 1.1%, respectively). Output per hour worked was 1.5% higher, compared with pre-coronavirus (COVID-19) pandemic levels (2019 average), while output per worker was 1.1% higher compared with the same period.

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.