By David Milliken
London: Productivity in Britain’s public sector recorded a 12 months-on-12 months decline within the three months to the top of September 2024, because the well being service struggled to get better from the influence of the COVID-19 pandemic and a wave of commercial motion.
Bleak productivity figures in each the public and personal sectors in recent times have contributed to stagnant dwelling requirements, a rising tax burden and a basic decline in public providers, together with lengthy waits for public healthcare.
Productivity within the public sector – roughly, how a lot in providers the public obtain per pound spent – fell 1.4per cent within the third quarter of final 12 months in contrast with a 12 months earlier, the Workplace for Nationwide Statistics mentioned. It rose 0.2per cent in contrast with the earlier quarter.
Healthcare productivity was down by 2.4per cent on a 12 months earlier, regardless of the top of strikes by docs and different well being employees after a newly elected Labour authorities agreed to larger pay rises than its Conservative predecessor.
Measured productivity within the well being service slumped by 39per cent initially of the COVID-19 pandemic as routine care was severely disrupted and solely partly recovered earlier than falling once more on account of strikes over pay in 2022 and 2023.
Within the third quarter of 2024 it was nonetheless 19per cent under its degree within the final quarter of 2019. Since 2019 assets going into public healthcare have elevated by 30per cent, however output has risen solely 6per cent.
For the general public sector, which is dominated by well being and schooling spending, productivity has fallen 8per cent since 2019.
Final week the Financial institution of England mentioned rising employment within the public sector, particularly healthcare, gave the impression to be weighing on general productivity.
For the economic system as an entire, output per hour labored has risen by 2per cent since 2019.
Public sector productivity just isn’t a direct measure of how exhausting employees work. As an alternative it displays the ratio of enter prices – together with wages, supplies and rents – and output, which could be exhausting to measure as most public providers would not have costs. (Reporting by David Milliken, enhancing by Andy Bruce)
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