Measuring Productivity What we produce and the wages
it costs
ONS International Comparisons of Productivity
are based on two measures: GDP per worker and GDP
per hour worked figures for the USA, France, Germany
and Japan. The index is calculated in terms of UK=100.
These figures were formerly
produced by the Department of Trade and Industry (DTI),
but responsibility for these data was handed over
to the Office for National Statistics (ONS) in October
2001.The investigation into data sources and methodology
that followed the handover highlighted a number of
improvements to the system that have since been made.
It was decided that, following
this investigation, the OECD’s Employment Outlook
was the most appropriate source for hours worked numbers,
due to its published nature and their open commitment
to improving the quality of the figures. However,
the source does contain a disclaimer that at present
the source is not totally reliable for cross country
comparisons. As a result of this the ONS figures on
GDP per hour worked are marked EXPERIMENTAL, and will
remain so until the ONS is satisfied that the OECD
have improved the comparability of the figures sufficiently.
Since the Census revisions to
population estimates, employment and hours worked
as measured by the UK LFS have been revised. However,
the OECD sources are yet to take account of this adjustment.
An adjustment has been made to the OECD series to
take account of this.
It is also important to note
that due to the limitations of international data
sources, these comparisons are not wholly compatible
with the domestic productivity data produced by the
ONS which is on a GVA per job basis rather than GDP
per worker.