Productivity growth 2010-2018

There's a wide productivity gap between the North and parts of the South. Cheshire may look like it’s doing pretty well, but to catch up with Inner London - West it would have to start growing at three times its current rate. (circle size in proportion to GVA per job)

Productivity may sound abstract but in reality has an important impact on a whole range of measures including earnings, life outcomes and businesses’ ability to export, compete on the international stage and survive.

The above plot shows the percentage increase in productive hours versus real GVA growth for areas in England between 2010 and 2018. Circles lying above the diagonal line represent areas with an increase in labour productivity, while those below the line have undergone a decrease in labour productivity.

Although many of the areas in the North and Midlands have seen an increase in labour productivity, there is a wide gap between the North and several regions in the South. The sizing of the circles in proportion to GVA per job illuminates the significant productivity gap in the country. For example, assuming that Inner London - West maintains its current level of productivity growth, Cheshire, a relatively productive northern region, would have to grow at three times its current rate to catch up in the next 10 years.