Productivity is one of the phenomena utilized by economists and different economies to analyze the growth of the country. If we take the example of two countries in the United States of America and the United Kingdom. One thing is clear about both countries the USA is a bigger economy compared to the UK. The reason the USA is better compared to the UK is dependent on the phenomena of productivity where the USA has better productivity. Here we are looking at two aspects of productive industrial and commercial.
The one finding we have is that the USA is doing way better than the UK, another finding is that the technological gap between the two countries is the reason behind the success of the USA.
The difference is beyond the USA and the UK
According to the report of 2016 ONS the UK is behind the countries of the G-7 significantly. The major gap we have concluded is the productivity gap. The gap was around sixteen points nine percent and declined more to sixteen points six percent. The data showed that per hour of work is a key component to test the productivity of a country.
If we analyze the data we can say that the G-7 countries outperform the UK, Uk is behind by around twenty percent (average ) of other G-7 countries. The USA is doing quite amazing when it comes to productivity as it is far more productive according to per hour work ( around thirty percent) compared to the UK.
Two scholars Greasley and oxley commented that the major reason behind the USA being such a productive nation is numerous technology development which helped the industrial sector to outperform other nations. The technological development helped the USA to achieve industrial development and high levels of productivity. The information technology scale reached highest during the 1980s in the USA, the development of that era in IT contributed more towards the productivity which translates into higher GDP.
According to Basu, the total productive factor declined in the UK during the 1990s, it’s not that the UK was behind the USA during that age of IT development despite that the decline was there. Another dramatic change happened during the 2008 financial crisis The UK suffered more than other European countries.
The major reason behind the lower productivity of the UK is a lower investment in the research and development sector. The skills required for certain posts are not that skillful officials are working, in simple terms they do not have a qualified workforce according to a report published in 2018 by the Institution of Productivity discussed that the UK has fewer qualified managers compared to other European nations. A low level of infrastructure can be another reason for low productivity.
Reference
UK Economy – The UK’s Productivity Problem. (n.d.). Economics | Tutor2u. https://www.tutor2u.net/economics/reference/uk-economy-the-uks-productivity-problem#:~:text=Reasons%20for%20the%20large%20UK,and%204.6%25%20in%20South%20Korea.
Testing, G. (2023). Sample Essay: Industrial Productivity UK vs US Comparison. 15 Writers. https://15writers.com/sample-essays/uk-us-industrial-productivity/
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