The Office for National Statistics says that, had productivity in the UK returned to its pre-recession trend, it would be 20% higher than its current level. Britain would be one fifth better off.
The normal pattern is that after a recession, productivity bounces back and we recover (at least most of) what we lost.
However, we have had no bounce since the great financial crisis.
It ts not just the UK – the pattern is remarkably similar around the globe.
The time to wait for the bounce has gone – the UK needs action to recover.
Let’s hope the new Productivity Council can pull the trigger.