UK Labor Productivity Falls in Q4

2026-02-17 09:55 By Joana Ferreira 1 min. read

Labor productivity in the United Kingdom, measured by output per hour worked, fell by 0.6% quarter-on-quarter in the three months to December 2025, according to preliminary estimates, reversing a 0.6% rise in the previous quarter.

On an annual basis, productivity declined by 0.5%, compared with 1.0% growth in the prior period.

Gross value added (GVA) increased by 1.0% over the year, but this lagged behind a 1.5% rise in hours worked, leading to the drop in output per hour.

Despite the recent weakness, output per hour remained 2.4% above its pre-pandemic 2019 average.

Since 2019, GVA has climbed 6.0%, outpacing the 3.5% increase in total hours worked over the same period.



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UK Labor Productivity Falls in Q4
Labor productivity in the United Kingdom, measured by output per hour worked, fell by 0.6% quarter-on-quarter in the three months to December 2025, according to preliminary estimates, reversing a 0.6% rise in the previous quarter. On an annual basis, productivity declined by 0.5%, compared with 1.0% growth in the prior period. Gross value added (GVA) increased by 1.0% over the year, but this lagged behind a 1.5% rise in hours worked, leading to the drop in output per hour. Despite the recent weakness, output per hour remained 2.4% above its pre-pandemic 2019 average. Since 2019, GVA has climbed 6.0%, outpacing the 3.5% increase in total hours worked over the same period.
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