Business & Finance
UK productivity is improving faster than official statistics indicate, thinktank reports
Resolution Foundation analysis suggests alternative workforce data shows broad-based economic recovery beyond tech and job cuts.
The short version
- A Resolution Foundation report indicates that UK worker productivity has been improving recently, contrary to official data showing stagnation or decline.
- The thinktank argues the gains are widespread across standard sectors rather than being driven by artificial intelligence adoption or job losses in hospitality and retail.
- The analysis aligns with other optimistic assessments, including recent data showing the UK tied for the fastest growth in the G7 during the first half of 2026.
Key facts
- The Resolution Foundation determined that UK worker productivity is rising faster than reported in official statistics by using an alternative workforce measure instead of the Labour Force Survey.[The Guardian]
- Resolution Foundation economist Simon Pittaway stated that productivity gains are not limited to AI advancements or workforce reductions in lower-productivity fields like retail and hospitality.[The Guardian]
- Official government figures showed the UK was the joint fastest-growing economy in the G7 during the first half of 2026.[The Guardian]
- Researchers from the London School of Economics and analysts at Morgan Stanley have also recently published more optimistic outlooks on the UK economy.[The Guardian]
What remains uncertain
- Whether official statistical bodies will adjust their national methodology in response to criticisms of the Labour Force Survey remains unconfirmed.[The Guardian]
Sources
- UK productivity growing faster than official figures suggest, thinktank findsThe Guardian - World