The Resolution Foundation has released analysis concluding that productivity growth in the United Kingdom is outpacing the figures reported in official government statistics. The thinktank attributes this discrepancy to methodological differences, noting that its assessment relies on what it characterizes as a more accurate measurement of the workforce compared to the widely criticized labour force survey.
Simon Pittaway, principal economist at the Resolution Foundation, emphasized that Britain’s historically weak productivity performance since the global financial crisis has been a significant factor in economic stagnation and limited wage growth. While conventional official data suggested productivity had deteriorated further in the mid-2020s, the thinktank’s alternative measurement indicates improvement has occurred in recent years.
The analysis addresses competing explanations for the potential productivity gains. Some economists have theorized that improvements stem from employment reductions in lower-productivity sectors such as hospitality and retail, effectively raising average worker output through workforce composition changes. However, the Resolution Foundation dismisses this theory, noting that hospitality employment levels remain comparable to late 2010s figures and sit only slightly below post-pandemic highs. Similarly, the thinktank argues the gains cannot be primarily attributed to artificial intelligence developments, as the improvements appear distributed across multiple economic sectors rather than concentrated in technology-driven areas.
Pittaway stated that productivity gains have been achieved by existing workers in their current roles within the same sectors, rejecting both the sectoral shift and AI-driven explanations. The foundation’s findings align with other recent economic assessments offering cautiously positive outlooks. Official data released recently showed the UK matched other nations for fastest growth among Group of Seven economies during the first half of 2026. Additional research from the London School of Economics and commentary from major financial institutions including Morgan Stanley have similarly identified signs of economic stabilization, with factors such as controlled inflation impacts and improved consumer confidence noted as contributing factors.
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