The U.K.’s productivity problem
The U.K. economy has had a severe productivity growth problem since the Great Recession. The chart below shows that if productivity had grown at the previous trend line, it would currently be about 13% higher. That would also mean that the aggregate wage income would be some 13% higher than it is right now.
For context, the median salary for a full-time worker is about £33,000 in the U.K. right now but would have been more than £4,000 higher if the economy had grown in line with the old trend.