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Story · United Kingdom · 13 Aug 2026

UK output per hour rose 0.7% year-on-year in Q2 2026 on the ONS preferred measure

ONS's preferred PAYE-RTI-based flash estimate showed UK output per hour 0.7% higher and output per worker 1.4% higher in Q2 2026 than a year earlier.

Economic GrowthSupply-Side Policy
Relevance date 13 Aug 2026, 06:00Updated 30 Aug 2026, 06:31Exam relevance 91/100
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+0.7%

UK output per hour, Q2 2026 vs Q2 2025 (preferred RTI-based estimate)

+1.4%

UK output per worker, Q2 2026 vs Q2 2025 (preferred RTI-based estimate)

-0.2%

UK output per hour, Q2 2026 vs Q2 2025 (LFS-based estimate)

Exam link: Supply-side policy → productivity and productive capacity → long-run aggregate supply → non-inflationary growth

Story toolsReport / correction
Understand the storyExpand

Using the ONS-recommended administrative-data approach, output per hour was 0.7% higher in Q2 2026 than Q2 2025 and output per worker was 1.4% higher. A Labour Force Survey-based estimate instead showed output per hour 0.2% lower, illustrating current measurement uncertainty.

What happened

The preferred PAYE-RTI-based flash estimate put year-on-year output-per-hour growth at 0.7% and output-per-worker growth at 1.4% in Q2 2026. The alternative LFS measure produced -0.2% for output per hour and +0.4% for output per worker.

Why it matters

Productivity determines how much output an economy can produce from its labour inputs. Sustained productivity growth can support higher real wages and living standards without creating the same inflation pressure.

Economic context

The methodology matters here. ONS currently recommends the RTI-based approach, while the LFS-based estimate gives a different result and has known quality issues. This is a strong evaluation point: productivity is difficult to measure in real time and early estimates are revised.

All key dataExpand
UK output per hour, Q2 2026 vs Q2 2025 (LFS-based estimate)
-0.2%
UK output per hour, Q2 2026 vs Q2 2025 (preferred RTI-based estimate)
+0.7%
UK output per worker, Q2 2026 vs Q2 2025 (preferred RTI-based estimate)
+1.4%
Terms explainedExpand

Year-on-year

A comparison with the same period one year earlier, which helps separate annual change from short-run monthly movements.

Use it in an examExpand

Evidence

ONS's preferred PAYE-RTI-based flash estimate showed UK output per hour 0.7% higher and output per worker 1.4% higher in Q2 2026 than a year earlier.

Explain

Higher productivity → more output per unit of labour → lower unit costs and higher productive capacity → LRAS can increase → stronger non-inflationary growth and scope for higher real wages

Evaluate

Early productivity estimates are uncertain and revised; a single quarter does not establish a lasting trend, and the ONS preferred administrative-data measure currently differs from the Labour Force Survey estimate.

Useful diagram: LRAS diagram showing higher productive capacity

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