Overview
- Public service productivity grew by 1.0% in Q1 2025 compared with the same period last year, marking the fastest annual increase since early 2023.
- Healthcare productivity led the advance with a 2.7% year-on-year rise but remains almost 9% below its 2019 level.
- Overall public service productivity is still 4.2% below its pre-pandemic peak, as service outputs have risen more slowly than labour and material inputs.
- Official 2024 figures were revised from a 0.3% decline to a 0.1% gain, reflecting greater healthcare output and highlighting the provisional nature of ONS data.
- Continued strikes by health workers and lingering capacity constraints threaten to impede further productivity improvements.