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UK PRODUCTIVITY: The impact of lost jobs

  • Published Date: 23 March 2016

Involuntary job separations (firings or redundancies) can explain more than a quarter of the UK's productivity puzzle, according to research by Panagiotis Giannarakis, to be presented at the Royal Economic Society's annual conference in Brighton in March 2016. His study suggests that even if displaced workers got new jobs, their productivity was considerably down on what it was in their previous employment.

In the first quarter of 2008, the UK entered one of the deepest recessions of its modern history. During the crisis, real GDP per capita and labour productivity (as output per hour worked) dropped by over 7% and the UK economy only started to recover following the trough of this crisis in 2009Q2.

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