The Bums-on-Seats Economy

UK productivity has fallen well behind our competitors. Some say as much as 30%. With a glut of cheap labour employers have achieved growth by increasing numbers of staff, but this has reduced investment in training, automation and other efficiencies.  A recent report from consultants McKenzies confirms that easy access to cheap labour is a significant cause of our low productivity.
“Primarily we think UK companies have more incentive and capability to actually increase output by hiring people rather than investing in advanced technology and automation”.
“Hiring people is cheaper and faster than investing in new equipment and then training people to use that equipment”
“The UK had three times as fast a growth rate in employment growth relative to other countries in this 2010 – 2015 period”