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Physicians

Public Sector Productivity Fails to Recover from Covid

Strategic Insights

— 1 min read

Despite a slight increase in productivity rates for the first quarter of the year, overall public sector productivity remains 4.2% lower than pre-Covid levels, as reported by the Office for National Statistics (ONS). The NHS, the largest contributor to public sector productivity, continues to struggle, with productivity remaining 8.8% lower than before the pandemic. The ongoing doctors' strike over pay has added to the pressure on productivity figures, with the British Medical Association and the Government yet to agree on a pay settlement.

Key Takeaways:

  • Total public sector productivity last year was 4.2% lower than before the 2020 pandemic.
  • Productivity rates in the public sector have never fully recovered from the Covid lockdowns, with ongoing strike chaos weighing on the figures.
  • Most of the productivity in the public sector comes from the NHS, which remains 8.8% lower in productivity compared to pre-pandemic levels.
  • ONS figures show healthcare productivity grew 2.7% in the first quarter of the year, while productivity overall for the public sector rose 1% over the same period.
  • The healthcare sector has experienced a third consecutive quarter of rising productivity, with a 2.7% increase in the first quarter.
  • The Government has proposed a stricter approach to future public sector pay deals, tying increases to improvements in productivity.
  • The Royal College of Nursing has rejected the Government's 3.6% pay increase offer, raising the prospect of further strikes across the NHS.

Statistics:

  • Total public sector productivity decreased by 4.2% compared to pre-pandemic levels (ONS).
  • NHS productivity remains 8.8% lower than before the pandemic (ONS).
  • Healthcare productivity grew 2.7% in the first quarter of the year (ONS).
  • Public sector productivity overall rose 1% compared to the same period the previous year (ONS).
  • Productivity for the healthcare sector has increased for three consecutive quarters (ONS).
  • The Royal College of Nursing rejected the Government's 3.6% pay increase offer (The Times).

Sources:

  • "Public sector productivity fails to recover from Covid" - The Times
  • "ONS figures show public sector productivity growing, but still below pre-Covid levels" - Office for National Statistics (ONS)
  • "Government proposes stricter approach to public sector pay" - The Times
  • "Royal College of Nursing rejects Government's pay offer" - The Times

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