TIGA, the trade association representing the UK video games industry, said today that more research is needed into producing reliable measures of productivity in different subsectors of the economy, including the creative industries. TIGA made the comments following the publication of evidence which suggests that the productivity gap between the UK and other G7 economies is not as great as previously thought, although the gap remains significant.
Productivity is measured by dividing how much an economy produces (GDP) by the number of hours being worked.[1] In 2016, the UK was ranked as the fifth most productive economy out of the G7, 16% below the average of the rest of the G7.[2] Following a review of productivity measures conducted by the OECD, it was revealed that there are areas of difference in the way different countries estimate the amount of time worked.[3]
In response to these findings, the ONS plans to publish a more detailed breakdown of how the UK compares with other developed countries on a more consistent basis.
Dr Richard Wilson OBE, TIGA CEO, said:
“As well as producing a more reliable productivity measure, more research is needed into producing measures of productivity in different subsectors of the UK economy. The ONS produces estimates of productivity for high-level industry groups, but not to the level of detail of the creative industries sector.[4]
“If we can monitor our productivity performance by subsector, we will be in a better position to compare our performance over time. A subsector analysis can additionally be compared with subsectors in other countries and enable the UK to identify which areas of the economy we need to improve.”
The full review of productivity measures produced by the OECD can be found here.
[1] ONS, Productivity gap narrows, 10 December 2018, link.
[2] House of Commons, Productivity: Key Economic Indicators, 19 February 2018, link.
[3] Ibid.