FX.co ★ UK Labor Productivity Falls in Q4

Labor productivity in the United Kingdom, measured as output per hour worked, decreased by 0.6% quarter-on-quarter in the three months to December 2025, according to preliminary estimates. This decline reversed a 0.6% increase recorded in the previous quarter. On an annual basis, productivity fell by 0.5%, following 1.0% growth in the prior period. Over the year, gross value added (GVA) rose by 1.0%, but this was outpaced by a 1.5% increase in hours worked, resulting in lower output per hour. Despite this recent weakness, output per hour remained 2.4% above its 2019 pre-pandemic average. Since 2019, GVA has grown by 6.0%, exceeding the 3.5% rise in total hours worked over the same period.