post 60..mdd2..that is an interesting post.
'productivity' can be seen as the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input'.
- it is a measure of efficiency in the workplace..[the efficiency of people, machines, factories, systems].
Off the top of my head here are a few reasons why UK productivity may not be as high as we would like, or may lag behind our competitors..
- a lack of investment by owners in the best machinery, best methods.
- a lack of decent quality training and skilling by both private and public sectors..[big debate on this is desirable]
- a transport system which is inefficient, overcrowded and slow.
- insufficient medium/long term investment in education and health care [eg - in the Budget I think health spending increased by £2.9 billion....for months the 'health industry' has been saying that they needed £4 billion just to stand still..]..if we underfund/underprovide education and healthcare do not be surprised if we have poor productivity.
Hammond couldn't afford more because growth is too low/slow.
Growth is too low/ slow because the economic policy [Austerity] is rubbish and will never work in it's present form...something I [and many others] have been saying for 6/7 years.
- low paid workers
- workers receiving 0% or 1% pay rises when inflation is 3%
- workers on zero hour contracts with little employment certainty
- workers NOT working with modern sophisticated equipment/tools/machinery
- workers suffering from low morale because of a particular situation in their workplace [how many examples do you want?]
ARE ALL unlikely to deliver improvements in productivity.
** Bullying can sometimes deliver productivity improvements..eg - the much publicised working practices at Mike Ashley's 'Sports Direct' warehouses..
- not the way forward though is it.
In terms of the points you mention in your post, I have covered some of them.
- you mention 'immigrants'...lots of them work in low skill activities where it is difficult to improve productivity.
you say..'A lot of jobs are low paid-so tax take from those jobs is low but "benefits" like child benefit, cost of health and education may be high
if families migrate and not just a worker- more may be taken out of the national pot than is put in.
This is a decent point [and important] but not really related to a discussion about 'productivity'.
you say..GDP will rise but not per capita GDP as more people work but the extra workers produce no more per worker than existing workers''
This is at the root of our productivity problems.
We used to dig coal, make steel, make cars, textiles, electrical goods [see the Burco-Belling thread earlier this week]pottery, clothing, furniture, warships, planes and much more - much of this production has gone or seriously cut back. All these industries had potential for decent productivity improvements, working with sophisticated equipment and tooling.
The Government keep bragging about the zillions of jobs they have created..examples include
shoeshine-boys in the City of London
home and office cleaners
hotel staff
high street retailing
mobile hairdressers
personal trainers
fast food outlets
leaflet/junk mail deliverers
taxi drivers
interior designers
''consultants' [?]
Ocado and similar..
car washes
garden landscapers
deliveroo
children's indoor play areas [many many more]
beauticians/false plastic fingernail fitters [..
]
Look no further for UK productivity problems.
Two things to finish with..
[1] a lack of public and private decent quality investment in the UK is a BIG problem.
[2] globalisation..many of our competitors [China, India, E Europe, Brazil, Turkey, Phillipines, Indonesia, Taiwan and dozens more] have lower labour costs than us, and it will therefore always be difficult to get ahead of them in the 'productivity game'...not a level playing field.