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And whilst productivity is down, the UK has achieved remarkable success in employment - since 2007 the number of people in work has risen by 2.7 million.

The UK has succeeded in creating jobs. For the sectors we analysed, the UK created a net total of nearly seven million (6,936,000) jobs between 1982 and 2017.* Unemployment in July-September was 4.1%, down from 8.4% in 2011. 

There is often a trade-off between productivity and employment growth. For example, productivity in manufacturing has risen strongly since 1997 while witnessing a sharp decline in employment. But experience in sectors such as ICT and the professional, scientific and technical sector show that it is possible to increase employment and productivity in tandem. 

The UK’s productivity puzzle is a policy challenge. While it is unlikely that one event or policy could put productivity growth back on track, measures directed at boosting efficiency among low-productivity firms or increasing the share of employment in high-productivity sectors could help to address the challenge.

* Office for National Statistics, Labour Force Survey