Three consecutive quarters of falling productivity – John McDonnell

John McDonnell MP, Shadow Chancellor, responding to news of productivity decreasing by 0.2% in the first quarter of 2019, said:

“We now have three consecutive quarters of falling productivity – another sign of an economy going backwards under the Tories.

“For nine long years, we’ve seen not just brutal austerity but also an utter failure by the Tories to get a grip on the productivity crisis.

“While the Tory leadership candidates talk about tax cuts for the rich, it’s clearer than ever that it’s time for a Labour Government, which will tackle the productivity crisis through a package of policies including a National Transformation Fund, National Investment Bank, and £10 per hour real living wage.”

Ends

Notes to Editors:

• ·                 Labour productivity for Q1 2019, as measured by output per hour, decreased by 0.2% compared with the same quarter in the previous year, according to the ONS: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/labourproductivity/bulletins/labourproductivity/januarytomarch2019
• ·                 The ONS notes that this is the third consecutive quarter of contraction in labour productivity.
• ·                 Labour productivity growth fell in manufacturing by 0.9% in Q1 2019 compared with the same quarter in the previous year, with total average hours worked growing twice as fast as output.