In fact, the productivity position is worse than this. Since the financial crisis,
productivity growth in the UK has more or less stalled altogether. This is a stark
divergence from the long-running trend (see figure 3.3), and it has occurred across
almost all sectors.76 It goes a long way to explaining the stagnation of earnings
over the past decade.
If GDP goes down by 10% should all wages fall by 10% or 10% lose all their wages? Britain’s flexible labour market meant this time around the first happened. Anybody capable of thought would consider this a success.