7 . Background notes

1. This Statistical Bulletin

We publish annual estimates of International Comparisons of Productivity twice a year. Initial estimates are published approximately nine months after the reference year, with final estimates published approximately five months later. Exact publication dates vary subject to the availability of the source datasets.

2. Quality and methodology

The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.

Designation can be broadly interpreted to mean that the statistics:

meet identified user needs

are well explained and readily accessible

are produced according to sound methods

are managed impartially and objectively in the public interest

Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

A Quality and Methodology Information paper (123.8 Kb Pdf) for this release was published on 20 July 2012, describing the intended uses of the statistics presented in this publication, their quality, and the sources and methods used to produce them. The paper also provides information on the uses and limitations of international comparisons of productivity.

For this release the base year for PPPs is 2011, which is the latest year for which the OECD PPP series have been benchmarked.

The output measure used here (GDP) differs from that used for the ONS headline measure of productivity (Gross Value Added (GVA)). In the National Accounts, GDP is valued at market prices and GVA is valued at basic prices. The principal difference is that basic prices exclude taxes and subsidies on products, such as VAT and excise duties. For further information on the relationship between GVA and GDP see Chapter 4 of the ONS Productivity Handbook.

GVA is the preferred measure of output for productivity purposes. However, as the OECD does not produce output level series using basic prices over the necessary time period, and PPPs are based on market prices, GDP is used in this bulletin. Differences between growth rates of GVA and GDP are not normally significant.

Estimates of labour inputs (employment and hours worked) are taken from OECD where available, supplemented in a small number of cases by other sources. Differences between OECD estimates and national sources reflect adjustments made by OECD to achieve greater consistency between national estimates. There may also be timing differences as national sources are updated outside the OECD revision cycle.

3. Other data on productivity

We publish a quarterly Labour Productivity statistical release, which provides much more detailed information regarding UK labour productivity than this ICP release. As noted above, our labour productivity estimates use GVA rather than GDP as the numerator. Our measures of employment and average hours also differ slightly from OECD measures in terms of coverage, timing and seasonal adjustment.

We publish annual Multi-factor productivity estimates for the UK, which decompose output growth into contributions due to changes in labour and capital inputs, and a residual component reflecting ‘disembodied technical change’.

We also publish a range of public sector productivity measures and related articles. These measures define productivity differently from that employed in the ONS Labour Productivity and MFP estimates. Further information can be found in Phelps (2010) (252.5 Kb Pdf) and in Gill and Kliesmentyte (2015).

More information on the range of ONS productivity estimates can be found in the ONS Productivity Handbook.

The OECD publishes its own estimates of current and constant price GDP per hour worked for member countries, the G7 and two other aggregates: the EU and OECD. The OECD current price estimates can easily be indexed to UK=100 and can then be compared with the estimates in Reference table (149.5 Kb Excel sheet) 1. While there are some differences between the two sets of estimates, the overall picture is very similar.

The OECD constant price estimates use a different base period to the estimates in Reference table (149.5 Kb Excel sheet) 3 and are best compared in terms of growth rates. Again, while the two sets of growth rates are not identical, the overall picture is very similar.

Differences between the estimates in this release and the OECD productivity series can be explained by the different sources used for the component data. In particular, our estimates use employment data that are based on countries’ labour force surveys, whereas the OECD estimates use the National Accounts as the main source of employment data for most countries. There can also be differences in the GDP data due to timing, as the OECD productivity estimates use Annual National Accounts whereas we use the Quarterly National Accounts for GDP data.

International estimates of productivity are also available from Eurostat, and the Conference Board.

4. User engagement

We are keen to develop a greater understanding of the use made of ICP and other productivity statistics, and organises annual user group workshops. An information note on the latest Productivity Statistics User Group workshop is available here. If you would like to be kept informed of future workshops and other productivity related information please email Productivity@ons.gov.uk.

You can follow ONS on Twitter and Facebook. This publication can be commented upon on social media using the hashtag #UKproductivity.

5. Publication policy

A list of the job titles of those given pre-publication access to the contents of this Statistical Bulletin is available on the website.

Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gov.uk These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.