Clifford Beaumont - British Productivity Decreases

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Clifford Beaumont - British Productivity Decreases
1888PressRelease - Less skilled labor entering
Britain as a result of Brexit may make it more
difficult for annual productivity to recover say
Clifford Beaumont economists. British
productivity decreased at its most rapid rate in
4 years during the last year after the nation
voted in favor of departing from the European
Union in a June 2016 referendum. This rapid drop
highlights the problems facing the British
economy as Brexit looms. The UK has fought to
coax greater productivity from its workers for
some time as numerous firms have engaged
additional labor instead of investing in needed
equipment. Although salary growth has been
unimpressive, this move has contributed to
unemployment dropping to its lowest in over 4
decades. British labor productivity per hour in
2016 was more than 15 percent less than that of
other developed economies. This is a gap that has
widened significantly in the wake of the 2008
financial crisis and shows no real signs of
decreasing. According to economists at Taipei,
Taiwan based Clifford Beaumont, output per hour
worked in the three months to June this year
experienced its biggest fall since the third
quarter of 2013. Before the 2008 financial
crisis, yearly productivity growth averaged more
than 2 percent. Clifford Beaumont economists are
of the opinion that Brexit, which could mean less
skilled labor entering the UK and reduced access
to the rest of Europes most important export
markets, will make it increasingly difficult to
catch up.
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Clifford Beaumont economists believe that the
drawn out uncertainty regarding Britains
economic outlook are damaging business sentiment,
investment and productivity and that extended
Brexit negotiations will only exacerbate this
problem. In addition, weak output will have a
negative impact on the UKs public
finances. http//www.twn-media.com