Statistical Bulletin
International Comparisons of
Productivity - First Estimates, 2011
Coverage: International
Date: 19 September 2012
Geographical Areas: Country, UK
Theme: Economy
International Comparisons of Productivity - First Estimates, 2011
•
Output per hour in the UK was 15 percentage points below the average for the rest of the G7
industrialised nations in 2011, the widest productivity gap since 1995. On an output per worker
basis, UK productivity was 20 percentage points lower than the rest of the G7 in 2011.
•
In 2011, UK output per hour grew roughly in line with the average for the rest of the G7, and
faster than the US and Germany. But UK output per worker was broadly flat in 2011, compared
with growth for the rest of the G7.
•
Since the start of the recession in 2007, growth of UK output per hour has trailed that of the US,
Japan and Canada, but has been similar to that of other major European economies.
•
Over this period, UK output per worker has fallen by a cumulative three percentage points. This
is the weakest of all G7 economies apart from Italy.
About this release
This bulletin contains annual estimates of labour productivity for the G7 developed countries
(Canada, France, Germany, Italy, Japan, UK and USA) up to 2011. Labour productivity measures
the amount of current price and constant price (that is, inflation adjusted) economic output that is
produced by a unit of labour input, and is a key measure of economic performance.
Output is measured by gross domestic product (GDP). Labour input is measured in two ways –
by total hours worked and by numbers of workers in employment. These two measures of labour
input can yield different results, reflecting differences in working patterns across countries and
compositional movements over time, such as a shift towards part-time working.
Comparability across countries is achieved by converting local currency based measures of current
price GDP using purchasing power parity (PPP) exchange rates. PPP exchange rates (usually
Office for National Statistics | 1
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
referred to simply as PPPs) attempt to equalise the cost of a representative basket of goods and
services in countries with different national currencies. An ONS article (246.1 Kb Pdf) explaining the
uses and limitations of PPPs is available on our website.
The estimates in this release update estimates to 2010 published on 6 March 2012 and provide first
estimates for 2011. This release cycle reflects the publication and revision cycles of the component
data series.
Interpreting these statistics
The labour productivity measures in this bulletin are presented in terms of current prices, suitable
for cross-country comparison of levels for a single year, and constant prices, suitable for analysis of
productivity growth over a number of years. The current price estimates in Tables 1 and 2 should be
read horizontally, while the constant price estimates in Tables 3 and 4 should be read vertically.
Current price productivity estimates are indexed to UK=100 for each year and show each country’s
productivity relative to that of the UK in that year. Since productivity is a key determinant of living
standards, these estimates also provide an indication of living standards relative to the UK.
In interpreting these estimates users should bear in mind that PPPs provide only an approximate
conversion from national currencies and may not fully reflect national differences in the composition
of a representative basket of goods and services. And the current price productivity estimates should
not be used to analyse productivity trends over time.
For example, an increase in UK productivity relative to another country could be due to UK
productivity growing faster, or falling less, or due to changes in relative prices in the two countries, or
some combination of these movements.
Constant price productivity estimates are indexed to a particular year. For each country, these
estimates are almost identical to national labour productivity series (minor differences from national
sources are described in the Background Notes to this bulletin). In this release the index year has
been changed from 2004 to 2007 in order to focus on movements in labour productivity over the
recession.
Constant price productivity estimates show the evolution over time of productivity for each country
and for the G7 (and G7 excluding the UK) aggregates, but should not be used to compare
productivity at a point in time. Changes in constant price productivity can be decomposed into
changes in output minus changes in labour inputs, and these components can move in different
directions within and across countries. This should be borne in mind in interpreting the constant
price productivity estimates in this release.
More information on methodology and interpretation is available in the Background Notes to this
bulletin. Additionally, a Quality and Methodology paper for this release provides information on the
quality of the estimates in this release, as well as providing a summary of methods used in compiling
the output.
Office for National Statistics | 2
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
Current price productivity
Current price productivity estimates allow for comparison of how much economic output is produced
by each worker and hour worked across countries in a particular year, relative to the UK=100.
Gross Domestic Product (GDP) per Hour Worked (Table 1)
First estimates for 2011 show that UK per hour worked was:
•
•
•
above that of Japan,
similar to that of Canada and Italy,
significantly below Germany, France, the US and the average of the G7 countries excluding the
UK.
Figure 1: Current price GDP per hour worked
Source: Office for National Statistics
Download chart
XLS format
(70.5 Kb)
Comparing 2011 with 2010, the UK productivity shortfalls relative to Italy, Germany, France and the
US all widened. Canada’s shortfall in productivity has been closed, and the productivity difference
between the UK and Japan narrowed by four percentage points. The difference in productivity
between the UK and the rest of the G7 widened by two percentage points and was the largest since
1995.
GDP per worker (Table 2)
Office for National Statistics | 3
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
On this basis, UK productivity in 2011 was:
•
•
•
above that of Japan,
lower than that of all the remaining G7 countries,
lower than the US by the greatest margin since 1990, when this series begins.
Figure 2: Current price GDP per worker
Source: Office for National Statistics
Download chart
XLS format
(70.5 Kb)
Comparing 2011 with 2010, the shortfall between UK labour productivity on a per worker basis and
the rest of the G7 widened by four percentage points. Against the US, the productivity difference
widened by five percentage points (the largest annual change on record), while the gap over Japan
narrowed to the smallest margin since 1996.
As illustrated in Figure 3, there are significant differences in average hours worked across the G7,
reflecting cultural and compositional differences between economies. These differences account for
differences in the patterns of productivity in Figures 1 and 2.
Comparing 2011 with 2010, the largest change in average hours was in the UK, where average
hours fell by around 1.5 percentage points, perhaps partly reflecting special factors such as the
Royal Wedding in April 2011. In addition, there has been a shift towards part-time employment
according to UK labour market statistics.
Office for National Statistics | 4
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
Figure 3: Average hours per worker
Source: Office for National Statistics
Download chart
XLS format
(70.5 Kb)
Constant price productivity
In this release, constant price productivity series are indexed to 2007=100 and show the evolution
of labour productivity over time for each separate country and for the G7, and G7 excluding the UK,
aggregates.
Office for National Statistics | 5
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
Figure 4: Constant price GDP per hour worked, selected G7 countries
Index 2007=100
Source: Office for National Statistics
Download chart
XLS format
(70.5 Kb)
Office for National Statistics | 6
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
Figure 5: Constant price GDP per worker, selected G7 countries
Index 2007=100
Source: Office for National Statistics
Download chart
XLS format
(70.5 Kb)
A striking feature of Figure 4 (GDP per hour) and Figure 5 (GDP per worker) is the difference in
productivity trajectories over recent years between the main European economies on the one hand
and the US and Japan on the other hand.
In 2011 US GDP was around one percentage point higher than in the pre-recession year of
2007, whereas US employment was some four percentage points lower and US hours worked
were around five percentage points lower. Hence US labour productivity in 2011 was some 5-6
percentage points above 2007 levels.
By contrast, UK GDP was 2.4 percentage points lower in 2011 than in 2007, while UK employment
was 0.3 percentage points higher, hence the fall in UK output per worker between 2007 and 2011.
Total hours worked fell by 2.8 percentage points in the UK over this period, reflected in output per
hour regaining its 2007 level in 2011. The weakness of UK labour productivity over this period has
been referred to as the "productivity conundrum" and is discussed further in this ONS article.
Office for National Statistics | 7
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
In 2011, productivity growth was similar in the UK and Germany. But GDP growth in Germany was
3.0 per cent compared with only 0.8 per cent in the UK, with correspondingly different movements in
labour inputs.
Revisions
Data covering the entire period 1990 to 2010 have been subject to revision in this release since the
previous publication on 6 March 2012. The main sources of revisions are as follows:
•
•
•
•
•
•
Small revisions to PPP exchange rates for Japan for 2009 and 2010.
Revisions to GDP estimates for the UK from 1990 onwards, reflecting revised measurement of
insurance services, in line with Eurostat requirements, see Improvements to Blue Book 2012:
Measurement of insurance services. For example, in 2010 UK current price GDP has been
revised upwards by 0.2 per cent, and UK constant price GDP has been revised upwards by 1.1
per cent.
Revisions to GDP estimates for other countries (apart from Canada) in 2009 and 2010, reflecting
updated information.
Major revisions to French employment and working hours for the whole period 1990-2010. More
information on these revisions.
Downward revisions to UK employment over the period 1993-2003.
Revisions to annual hours for Germany and the UK over the whole period.
Tables R1 to R4 of this release compare the latest estimates up to 2010 with the estimates from the
previous release on 6 March 2012. Revisions arise from a combination of revisions to the input data
cited above.
Notes for Revisions
1.
Note that because Tables 1 and 2 are indexed to UK=100, revisions to the UK are zero by
definition. Thus, revisions to other countries may represent a combination of revisions to UK
data and other countries’ data.
Background notes
1.
This Statistical Bulletin
ONS publishes annual estimates of International Comparisons of Productivity twice a year. Initial
estimates are published approximately nine months after the reference year, with final estimates
published approximately five months later. Exact publication dates vary subject to the availability
of the input datasets.
2.
Quality and methodology
A revised and updated Quality and Methodology paper for this release was published on 20
July 2012. This paper describes the intended uses of the statistics presented in this publication,
Office for National Statistics | 8
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
their quality, and the sources and methods used to produce them. The paper also provides
information on the uses and limitations of international comparisons of productivity.
The output measure used here (GDP) differs from that used for the ONS headline measure of
labour productivity (Gross Value Added (GVA)). The difference between these measures is that
GDP uses market prices and GVA uses basic prices, which exclude taxes and subsidies and
trade and transport costs. As the OECD does not produce output series using basic prices over
the necessary time period, and PPP exchange rates are implicitly based on market prices, GDP
is used in this bulletin.
3.
Other data on productivity
ONS publishes a quarterly Labour Productivity statistical bulletin. This provides more detailed
information regarding UK labour productivity than this release.
ONS also publishes experimental estimates of multi-factor productivity (117.3 Kb Pdf) (MFP),
which decompose output growth into the contributions that can be accounted for by labour and
capital inputs. In these estimates, the contribution of labour is further decomposed into quantity
(hours worked) and quality dimensions.
Lastly, ONS publishes a range of public sector productivity measures and related articles. These
measures define productivity differently from that employed in the ONS labour productivity and
MFP estimates. Further information can be found in Phelps (2010) (252.5 Kb Pdf).
More information on the range of ONS productivity estimates can be found in the ONS
Productivity Handbook.
The OECD also publishes growth of GDP per hour worked. for the G7 and two other
aggregates, the EU and OECD. These OECD estimates can be compared with the series in
Table 3 of this bulletin. The differences between the ONS and OECD series are not large. They
can be explained by the different sources used for the component data. In particular, ONS
estimates use employment data that are based on countries’ labour force surveys, whereas the
OECD estimates use the National Accounts as the main source of employment data for most
countries. There are also slight differences in the GDP data, as the OECD estimates use the
Annual National Accounts with results in national currency, whereas ONS uses the Quarterly
National Accounts for GDP data.
More international data on productivity are available from Eurostat, and the Conference Board.
4.
User engagement
ONS is keen to develop a greater understanding of the use made of international comparisons
of productivity statistics. If you have something to tell us, please use the feedback form on ONS
productivity statistics available at: http://www.ons.gov.uk/ons/guide-method/method-quality/
specific/economy/productivity-measures/productivity-articles/index.html
ONS is organising a Productivity Statistics User Group Workshop in early 2013. If you are
interested in attending please email: [email protected].
Office for National Statistics | 9
International Comparisons of Productivity - First Estimates, 2011 | 19 September 2012
You can follow ONS on Twitter: www.twitter.com/statisticsons and Facebook:
www.facebook.com/statisticsons and watch our videos at www.youtube.com/onsstats
5.
Next publication date
Final estimates for 2011 will be published in February 2013.
6.
Details of the policy governing the release of new data are available by visiting
www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media
Relations Office email: [email protected]
These National Statistics are produced to high professional standards and released according to
the arrangements approved by the UK Statistics Authority.
Copyright
© Crown copyright 2012
You may use or re-use this information (not including logos) free of charge in any format
or medium, under the terms of the Open Government Licence. To view this licence, visit
www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team,
The National Archives, Kew, London TW9 4DU, or email: [email protected].
This document is also available on our website at www.ons.gov.uk.
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Office for National Statistics | 10
International Comparisons of Productivity
Table 1: Current price GDP per hour worked
UK = 100
G7
G7 exc. UK
132
120
122
130
117
119
100
126
115
116
90
100
124
114
115
123
90
100
122
113
115
126
119
89
100
121
112
113
121
124
117
88
100
119
110
111
103
122
121
117
86
100
120
110
111
1999
104
122
123
114
86
100
121
111
112
2000
100
122
119
112
85
100
118
109
110
2001
99
122
119
112
84
100
118
109
109
2002
95
123
118
105
83
100
116
107
108
2003
95
118
119
102
83
100
117
107
107
2004
94
115
119
98
83
100
117
106
107
2005
97
117
119
98
83
100
119
108
108
2006
95
118
118
97
81
100
116
106
106
2007
96
120
121
101
83
100
118
108
109
2008
97
122
123
104
84
100
120
110
110
2009
99
125
123
106
84
100
124
112
113
2010
98
123
121
102
86
100
125
112
113
2011
100
125
122
104
90
100
127
114
115
Germany
Italy
Japan
UK
US
G7
G7 exc. UK
Canada
France
Germany
Italy
Japan
UK
US
1990
116
132
1991
115
132
132
125
94
100
133
124
96
100
1992
112
128
130
120
93
100
1993
110
125
126
120
92
1994
109
125
126
121
1995
108
125
127
1996
104
122
1997
103
1998
Note: This table should be read horizontally
Source: Office for National Statistics
Table 2: Current price GDP per worker
UK = 100.
Canada
France
1990
118
123
132
109
100
138
1991
115
122
117
131
108
100
136
123
125
1992
115
122
118
129
105
100
137
122
124
1993
113
118
113
130
102
100
134
119
121
1994
111
116
113
130
99
100
131
118
119
1995
110
115
112
132
98
100
130
117
118
1996
108
113
110
129
97
100
129
116
117
1997
106
111
107
126
94
100
127
114
115
1998
106
111
105
128
91
100
128
114
115
1999
107
111
106
125
91
100
131
114
116
2000
104
109
103
122
91
100
128
112
114
2001
102
108
101
121
89
100
125
111
112
2002
99
108
101
114
89
100
125
110
111
2003
99
104
102
111
89
100
126
110
111
2004
98
103
102
107
89
100
126
110
111
2005
101
104
102
106
88
100
127
110
111
2006
99
104
101
106
87
100
125
109
110
2007
100
106
102
109
88
100
127
111
111
2008
101
110
105
113
89
100
130
113
114
2009
102
112
103
113
88
100
133
114
115
2010
101
110
103
110
90
100
134
114
116
2011
105
114
106
114
96
100
139
119
120
Note: This table should be read horizontally
Source: Office for National Statistics
Table 3: Constant price GDP per hour worked
2007 = 100
G7
G7 exc. UK
74
73
74
76
75
76
71
77
77
77
80
73
78
79
79
93
82
75
78
80
80
83
93
83
77
81
82
82
84
85
95
85
78
82
83
84
88
86
85
95
85
81
84
85
85
1999
91
88
88
95
87
83
87
87
88
2000
94
91
91
98
88
86
89
90
90
2001
94
92
94
99
90
87
91
91
91
2002
96
94
95
99
92
90
93
93
93
2003
96
95
96
98
93
93
95
95
95
2004
97
96
97
98
96
94
97
96
97
2005
99
97
97
99
98
96
98
98
98
2006
100
100
99
99
98
98
99
99
99
2007
100
100
100
100
100
100
100
100
100
2008
100
99
100
99
100
99
100
100
100
2009
100
98
97
97
99
98
103
100
101
2010
102
100
99
99
103
99
105
103
103
2011
103
101
99
99
107
100
106
104
105
Germany
Italy
Japan
UK
US
G7
G7 exc. UK
Canada
France
Germany
Italy
Japan
UK
US
1990
78
74
1991
79
75
73
81
73
64
73
82
75
64
1992
80
77
75
83
76
68
1993
82
78
76
87
79
1994
84
80
79
90
1995
85
82
81
1996
85
83
1997
87
1998
Note: This table should be read vertically
Source: Office for National Statistics
Table 4: Constant price GDP per worker
2007 = 100
Canada
France
1990
81
82
83
83
67
74
1991
80
83
80
84
84
68
75
77
78
1992
82
85
83
85
84
70
77
79
80
1993
83
85
83
89
84
73
78
80
81
1994
86
87
85
92
85
76
79
82
82
1995
87
88
87
96
86
77
80
83
84
1996
87
89
88
96
88
79
82
85
85
1997
89
90
90
98
89
81
84
86
87
1998
90
91
90
98
87
83
86
88
88
1999
93
93
92
98
88
85
89
90
90
2000
96
93
94
100
90
87
91
91
92
2001
96
93
96
100
91
89
92
92
93
2002
97
94
96
99
92
90
93
94
94
2003
96
94
97
98
94
93
95
95
95
2004
98
97
98
99
96
94
97
97
97
2005
99
98
98
99
97
95
98
98
98
2006
100
99
99
99
98
97
99
99
99
2007
100
100
100
100
100
100
100
100
100
2008
99
99
100
98
99
98
100
100
100
2009
98
98
95
94
95
96
101
98
98
2010
100
99
98
97
100
97
104
101
101
2011
100
101
98
97
104
97
105
102
103
Note: This table should be read vertically
Source: Office for National Statistics
International Comparisons of Productivity
Table R1: Revisions to current price GDP per hour worked
Index points
G7
G7 exc. UK
-1
-1
-1
0
0
0
0
-1
0
-2
-1
-1
-2
-1
0
-2
-1
-1
-2
-1
0
-2
-1
-1
-1
-2
-1
0
-2
-1
-1
6
0
0
0
0
0
0
0
-1
5
-1
-1
-1
0
-1
-1
-1
1999
-1
5
-1
-1
-1
0
-1
-1
-1
2000
-1
4
-1
-1
-1
0
-1
-1
-1
2001
-1
4
0
-1
-1
0
-1
0
0
2002
-1
4
0
-1
0
0
-1
0
0
2003
-1
4
-1
-1
-1
0
-1
-1
-1
2004
1
6
2
1
1
0
1
1
2
2005
-1
4
-1
-1
-1
0
-1
-1
-1
2006
0
4
0
0
0
0
-1
0
0
2007
0
5
0
0
0
0
0
0
0
2008
0
5
0
0
0
0
0
0
0
2009
0
6
0
-1
0
0
0
0
0
2010
1
6
3
1
1
0
1
1
1
Canada
France
Germany
Italy
Japan
UK
1990
0
6
1991
-1
5
-1
1992
0
5
0
1993
-1
4
1994
-2
1995
-2
1996
US
0
0
0
0
-1
-1
0
0
0
-1
-1
4
-2
4
-1
-1
4
1997
0
1998
Note: Revisions show the rounded difference in index points between the data published on 6 March 2012 and 19 September 2012.
Table R2: Revisions to current price GDP per worker
Index points
Canada
France
Germany
1990
0
1
0
1991
-1
0
-1
1992
-1
0
-1
1993
-2
-1
-2
1994
-2
-1
1995
-2
1996
Italy
US
G7
G7 exc. UK
Japan
UK
0
0
0
0
0
0
-1
-1
0
-1
-1
-1
-1
-1
0
-1
-1
-1
-2
-1
0
-2
-1
-2
-2
-2
-2
0
-2
-2
-2
-1
-2
-2
-1
0
-2
-2
-2
-1
0
-1
-2
-1
0
-2
-1
-1
1997
-1
-1
-1
-2
-1
0
-2
-1
-2
1998
-1
0
-1
-1
-1
0
-1
-1
-1
1999
-1
-1
-1
-1
-1
0
-1
-1
-1
2000
-1
-1
-1
-1
-1
0
-1
-1
-1
2001
-1
-1
-1
-1
-1
0
-1
-1
-1
2002
0
-1
0
0
0
0
-1
0
0
2003
-1
-1
-1
-1
-1
0
-1
-1
-1
2004
0
0
0
0
0
0
0
0
0
2005
-1
-1
-1
-1
-1
0
-1
-1
-1
2006
0
0
0
0
0
0
0
0
0
2007
0
-1
0
0
0
0
-1
0
-1
2008
0
-1
-1
-1
0
0
-1
-1
-1
2009
-1
-1
-1
-1
0
0
0
0
-1
2010
0
-2
1
0
0
0
-1
0
0
Note: Revisions show the rounded difference in index points between the data published on 6 March 2012 and 19 September 2012.
Table R3: Revisions to constant price GDP per hour
Index points
G7
G7 exc. UK
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
0
1999
0
0
0
0
0
1
0
0
0
2000
0
0
0
0
0
1
0
0
0
2001
0
0
0
0
0
0
0
0
0
2002
0
-1
0
0
0
0
0
0
0
2003
0
-1
0
0
0
1
0
0
0
2004
0
-1
0
0
0
-1
0
0
0
2005
0
-1
0
0
0
0
0
0
0
2006
0
0
0
0
0
0
0
0
0
2007
0
0
0
0
0
0
0
0
0
2008
0
0
0
0
0
0
0
0
0
2009
0
1
0
0
0
0
0
0
0
2010
0
-1
1
0
0
0
0
0
0
Canada
France
Germany
Italy
Japan
UK
US
1990
0
0
1991
0
0
-1
0
0
-2
0
0
0
-1
1992
0
0
0
0
0
-1
1993
0
0
0
0
0
1994
0
0
0
0
1995
0
0
0
1996
0
0
1997
0
1998
Note: Revisions show the rounded difference in index points between the data published on 6 March 2012 and 19 September 2012.
Table R4: Revisions to constant price GDP per worker
Index points
Canada
France
Germany
Italy
Japan
UK
US
G7
G7 exc. UK
1990
0
1
0
0
0
-2
0
0
0
1991
0
1
0
0
0
-1
0
0
0
1992
0
1
0
0
0
-1
0
0
0
1993
0
1
0
0
0
0
0
0
0
1994
0
1
0
0
0
0
0
0
0
1995
0
1
0
0
0
0
0
0
0
1996
0
1
0
0
0
0
0
0
0
1997
0
1
0
0
0
1
0
0
0
1998
0
1
0
0
0
1
0
0
0
1999
0
0
0
0
0
0
0
0
0
2000
0
0
0
0
0
0
0
0
0
2001
0
0
0
0
0
0
0
0
0
2002
0
0
0
0
0
0
0
0
0
2003
0
0
0
0
0
0
0
0
0
2004
0
0
0
0
0
-1
0
0
0
2005
0
0
0
0
0
0
0
0
0
2006
0
0
0
0
0
0
0
0
0
2007
0
0
0
0
0
0
0
0
0
2008
0
0
0
0
0
0
0
0
0
2009
0
0
0
0
0
1
0
0
0
2010
0
-2
0
0
0
0
0
0
0
Note: Revisions show the rounded difference in index points between the data published on 6 March 2012 and 19 September 2012.