UK Labor Productivity Falls More than Expected

Labor productivity in the United Kingdom, measured by output per hour worked, fell by 0.8% quarter-on-quarter in Q2 2026, more than market expectations of a 0.5% decrease. It follows an upwardly revised 1.1% rise in Q1. On an annual basis, productivity increased by 0.7%, compared with a 2.1% rise in the prior period.

Labor productivity in the United Kingdom, measured by output per hour worked, rose by 0.9% quarter-on-quarter in the first three months of 2026, according to preliminary estimates, reversing a 0.5% fall in the previous quarter. On an annual basis, productivity increased by 0.4%, compared with 0.4% drop in the prior period. Gross value added (GVA) increased by 1.1% over the year, and the amount of hours worked increased by 0.7%. Output per hour was 3.5% above its pre-pandemic 2019 average. Since 2019, GVA has climbed 6.8%, outpacing the 3.2% increase in total hours worked over the same period.

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.