What is productivity?
Productivity is how much an economy produces for each hour worked. In the UK it is usually measured as output per hour. Higher productivity lets wages rise without pushing up prices. UK productivity growth has been weak since the 2008 financial crisis, which many economists call the 'productivity puzzle'.
Productivity grows when workers have better tools, skills, technology and ways of working. Investment in machines, transport, energy and training all help. Before 2008, UK productivity grew by around 2% a year. Since then it has grown much more slowly, and the UK lags countries like the US, France and Germany. Economists blame low business investment, planning delays, weak regional economies and poor management, among other factors. Productivity matters because it is the main driver of long-term living standards. When it grows, there is more to share out in wages, profits and taxes. When it stalls, pay struggles to rise. The OBR's productivity forecast has a big effect on its estimate of the government's future tax income. Small gains add up. Growth that is just 1% faster each year compounds into much higher incomes over a decade.
The left tends to call for more public investment, an industrial strategy, skills funding and stronger workers' rights.
The right tends to call for lower business taxes, less regulation, planning reform and more competition.
Britain is split. Now you decide.
Investment, skills and planning choices in Population Decides slowly lift productivity, which pays off in growth later in your term.
Play Population Decides freeCommon questions
Why is UK productivity low?
There is no single cause. Low investment, slow planning, regional gaps and skills shortages are often blamed.
Does productivity mean working harder?
Not exactly. It means producing more in the same time, often through better tools and methods.