UK productivity, a key indicator of economic health, is growing at a faster rate than official figures suggest, according to new analysis from the Resolution Foundation. The thinktank's findings propose that the economy may be starting to recover from the impact of the 2008 global financial crisis.
The Resolution Foundation re-evaluated the UK's recent productivity, utilising what it describes as a more precise representation of the workforce compared to the frequently criticised labour force survey. Simon Pittaway, the thinktank's principal economist, stated that while official figures suggest a decline in worker output in the mid-2020s, their measure indicates an improvement in recent years.
The thinktank dismisses the idea that this productivity increase is solely due to job reductions in sectors such as hospitality and retail, noting that the proportion of the workforce in hospitality remains similar to the late 2010s. It also suggests the uptick is not exclusively linked to AI, as it is observed across various sectors of the UK economy.
This report follows recent official figures showing the UK was the joint fastest-growing economy in the G7 during the first half of 2026. Economists at Morgan Stanley have also described the UK as being in "an OK place," with growth and inflation less affected by the Iran war than anticipated, and consumer confidence reaching a two-year high.