The OBR predict the new normal for GDP growth is closer to 1.7%.

The UK continuously lags behind its G7 counterparts. In 2023, the Organisation for Economic Co-operation and Development predicts that only Russia, who is heavily sanctioned, will fare worse in the G20 than the UK.

Various factors have contributed to the longstanding productivity puzzle in the UK, such as employer investment, deployment of new technologies, process changes, Government infrastructure, budgets and public service investment. Underpinning all of these are skills.

So, what is productivity, and how is it measured?

Productivity is the ratio between output and input volumes. Simply put, how efficiently are inputs such as labour and capital used in the economy to produce a given output level. Productivity is critical in measuring growth and competitiveness between countries, organisations, and individuals. There are different productivity measures; the most widely used measure is Gross Domestic Product (GDP).

The latest figures from the Office for National Statistics (ONS) indicate a 0.1% fall in GDP in quarter 2 (April to June 2022). This fall in GDP, combined with the highest inflation rate in 40 years and a 2.6% real-term fall in pay, indicates a productivity and economic crisis for the UK. If we can boost productivity and raise supply, we can put downward pressure on prices and lower inflation, reducing the length of the predicted 2022 winter recession for the UK.

How will investment in skills reverse the current downward trend?

An overhaul of the UK's National Skills Strategy, with a focus on:

• Management skills to identify, develop and implement productivity improvements.
• Employability skills including basic literacy, numeracy, cognitive and digital skills; and
• Technical knowledge, including the use of new materials, methods and technologies.

NOCN Group acknowledges we have a vital role in improving productivity, employability, technical, and management skills to equip the UK workforce with the skills needed to drive a productive society. We do this in a variety of ways:

1. We have over 30 productivity and management units across levels 4, 5 and 7 to help managers gain the skills to increase performance and business competitiveness.
2. For those planning to enter the workforce, we have created Employability Qualifications with sector pathways, which can be supported further by our Essential Digital Skills and Functional Skills Qualifications to improve literacy, numeracy, digital and soft skills.
3. We offer qualifications, End Point Assessments and short courses to enhance work-based roles, technical knowledge of new workforce entrants, and to upskill or reskill existing workforce members.

Why should employers develop employees' productivity skills?

While increasing output without the need to increase inputs is the simple goal of improving productivity, developing employees' productivity skills provides additional business enhancements.

Creating a productive, employee-focused workplace with a culture of skills development can:

• Give employees greater job fulfilment – high employee satisfaction and a sense of purpose correlate with profitability and customer loyalty.
• Reduce churn - improve your retention rate, reduce replacement costs, maintain skill levels, and keep continuity with clients and employees.
• Improve communication channels – time can often be wasted on misaligned expectations or the misunderstanding of tasks; developing employee communication skills reduces this risk, and improves project efficiencies, and customer service levels.

Productivity is integral to the long-term success of businesses, individuals' well-being, and economic growth. Investing in skills is vital to solving the UK's productivity puzzle.