Wednesday 07 July 2021 11:55 am

Remote workers drive up UK productivity

Workers in industries that were able to rapidly pivot to remote working after the onset of the pandemic have driven up productivity levels in the UK, according to new figures released today.

Estimates from the ONS show output per job, excluding furloughed workers, was 9.2 per cent higher on average in the first quarter of this year compared to the same period last year, before Covid struck.

“This indicates that furloughed workers were more likely to work in lower productivity industries, with higher productivity individuals and industries still working to a greater degree, pushing up aggregate productivity” the ONS said.

Industries that were able to assimilate remote working into their operations were more likely to have a more productive workforce. Output per job in these industries is likely to have boosted by less time spent on commuting and better work life balance as a result of working from home.

Output per hour worked in the entire workforce in the first quarter of this year jumped 0.9 per cent compared with the same quarter a year ago.

Output per worker fell 4.7 per cent quarter-on-year, driven by a high proportion of the workforce still being furloughed being counted in the statistics.

Industries most likely to have driven the strong productivity gains include financial and professional services, reflecting these firms’ ability to rapidly change their working practices without much disruption.

The productivity gains underlines the resiliency of workers to post strong performances in their jobs even amid the pandemic disruption.

The figures come as businesses prepare to welcome back staff to their offices after the final set of Covid restrictions lift on 19 July.