Labour productivity continues to fall in the UK, today’s latest ONS release shows.
Output per hour dropped by 0.2% in Quarter 3, 2012, compared to the previous quarter. This means a fall of over 2% compared to the same period last year and over 3% compared to the pre-crisis period. This is a particularly striking drop considering than in the five years before the financial crisis labour productivity rose by over 12%.
The reasons for this remain rather a puzzle. And a look at other European countries confirms that the UK is unusual. But it’s not unique. Most core European countries had a drop in productivity levels compared to those in the US. But their performance varied considerably during the last few years of economic crisis, as this chart highlights … Read more
Chinese exports grew less than expected in November, fueling fears of a further economic slowdown. But exports from western inland Chinese regions have never grown so fast as in 2012, beating export growth rates of the rich industrial coastal regions.
Chinese export growth declined to 2.9 per cent in November from 11.6 per cent in October. On a rolling 12-month sum exports grew at an annual rate of 7.9 per cent in November, a figure well below the more than 30 per cent growth of the late 2010 and early 2011 and marks a 28-month record low. But not all regions in China experienced the same slowdown.
The Treasury’s long-awaited review of the Private Finance Initiative has been released as part of today’s Autumn Statement. It contains some pretty damning findings – and some interesting proposals for the years ahead.
Firstly, it’s ditching the much-maligned name “PFI”. Instead, from now on we will have “PF2″. Get used to it. Here are some of the other interesting points in the report. Read more
Fraser Nelson, editor of the Spectator, has written up a paper on Swedish school reforms, which you can download here. I thought it was worth using to quickly flag up two important statistical public policy points.
The context to this is that Sweden has, since the early 1990s, allowed private (including for-profit) institutions to enter the school system – and parallels are often drawn between it and the ongoing reforms of England’s school system. This paper, as Fraser rightly says, comes to the view that increasing the volume of private schools in an area is associated with improved results. Mikael Lindahl and Anders Böhlmark say:
If we transform our estimates to standard deviation (S.D.) units (using the variation across all individuals) we find that a 10 percentage point increase in the share of independent-school students has resulted in 0.07 S.D. higher average educational achievement at the end of compulsory school.
(SAUL LOEB/AFP/Getty Images)
Two sets of impending economic data are likely to hit the headlines in the last days of the US presidential campaign: the first estimate of GDP for the third quarter of the year, out on Friday October 26, and the employment situation report for October, published on Friday November 2, four days before the election.
After the release of labour market data for September, President Obama’s camp made much of strong growth in hiring, up 114,000 compared with August, and a fall in the unemployment rate from 8.1 per cent to 7.8 per cent, taking the rate back to where it was when the president took office in 2009. Mitt Romney’s campaign countered that, if not for people exiting the labour market, the rate would be in double figures. Read more