For the last few years economists have been worrying about the why productivity has remained stubbornly low even as the economy has got stronger. Part of the story is that employment has risen so strongly that output per hour worked hasn't gone up. There has also been particularly strong growth in the lower value service sector which brings down the average. But data from the ONS today has shown in the last year that even in this sector productivity has started to rise. in the last year even in this sector productivity has started to rise a little, although manufacturing has proved volatile. (Source ONS productivity data released 6 January 2017)

1. UK economywatch 6 Jan 17:
Service sector productivity up
The “productivity puzzle” describes how
productivity - output per hour - has remained
stubbornly below trend as the economy recovers.
In part this is due to the rise of low value service
sector jobs.
But in the last year even in this sector
productivity has started to rise a little, although
manufacturing has proved volatile.
(Source ONS productivity data released 6 January
2017)
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