FX.co ★ UK Labor Productivity Rises for Second Straight Quarter

In the first quarter of 2025, labor productivity in the United Kingdom, defined as output per hour worked, experienced a modest increase of 0.2%, as per preliminary estimates, building on a previous rise of 0.7%. This marked the second consecutive quarter of growth, ending a period of four quarters characterized by either decline or stagnation. Nevertheless, on an annual scale, productivity saw a decrease of 0.2%, following a 0.5% decline in the fourth quarter, due to a 1.5% rise in hours worked compared to only a 1.2% increase in output. Despite this annual downturn, productivity still stands 2.1% higher than pre-pandemic levels, supported by a 4.7% increase in output and a 2.5% rise in hours worked.