Gross value added labour productivity
Summary
Labour productivity is the quantity of goods and services produced per unit of labour input. It is a widely used measure of economic performance of a nation or an area. Output per hour worked is a measure of productivity and is workplace-based. Labour productivity is calculated by dividing output, gross value added (GVA), by a measure of labour input, in this case total hours worked.
Productivity is important because increasing productivity is critical to increasing economic growth in the long term. Raising productivity can be achieved by increasing output (GVA) relative to the hours worked to produce that output.
The figures are at current prices (smoothed) GVA per hour worked for 2022 and are provisional. The balanced GVA(B) data used in this release are measured in current prices, which includes the effect of inflation. The GVA for Extra-Regio comprises compensation of employees and gross operating surplus which cannot be assigned to regions.
Labour productivity by local authority
- For Lancashire-14, the current price (smoothed) GVA per hour worked is £35.60, which is lower than North West (£36.80) and the UK (£39.70).
- This means that on average, each hour worked in Lancashire-12 was 10.3% less productive than the national average.
- Labour productivity was highest in South Ribble (£53.90) and Ribble Valley (£43.10).
- It was lowest in Blackpool (£29.70) and Blackburn with Darwen (£30.60).
Table 1: Labour productivity by local authority
| Area | 2022 GVA(B) per hour worked (£) at current prices (smoothed) | Percentage difference to UK |
|---|---|---|
| Burnley | 34.2 | -13.9 |
| Chorley | 34.4 | -13.4 |
| Fylde | 40.8 | 2.8 |
| Hyndburn | 32.4 | -18.4 |
| Lancaster | 35.5 | -10.6 |
| Pendle | 32.3 | -18.6 |
| Preston | 31.9 | -19.6 |
| Ribble Valley | 43.1 | 8.6 |
| Rossendale | 33.7 | -15.1 |
| South Ribble | 53.9 | 35.8 |
| West Lancashire | 38.6 | -2.8 |
| Wyre | 35.3 | -11.1 |
| Blackburn with Darwen | 30.6 | -22.9 |
| Blackpool | 29.7 | -25.2 |
| Lancashire-14 ITL2 sub-region | 35.6 | -10.3 |
| North West | 36.8 | -7.3 |
| England | 40.3 | 1.5 |
| United Kingdom less Extra-Regio | 39.7 | 0.0 |
Source: Office for National Statistics - Subregional productivity: labour productivity indices by local authority district, published 17 June 2024
Labour productivity by International Territorial Level (ITL)
- Labour productivity was highest in the Mid-Lancashire ITL3 (£40.30), which was above the North West (£36.80) and 35.7% above the UK (£39.70).
- In the Lancashire-12 area, labour productivity was lowest in the East Lancashire ITL3 (£33.10), which was 16.6% below the UK.
- In Lancashire-14, it was lowest in Blackpool ITL3 (£29.70) and Blackburn with Darwen ITL3 (£30.60).
Table 2: Labour productivity by International Territorial Level (ITL)
| Area | 2022 GVA(B) per hour worked (£) at current prices (smoothed) | Percentage difference to UK |
|---|---|---|
| Blackburn with Darwen ITL3 area | 30.6 | -22.9 |
| Blackpool ITL3 area | 29.7 | -25.2 |
| Lancaster and Wyre ITL3 area | 35.4 | -10.8 |
| Mid Lancashire ITL3 area [1] | 40.3 | 1.5 |
| East Lancashire ITL3 area [2] | 33.1 | -16.6 |
| Chorley and West Lancashire ITL3 area | 36.6 | -7.8 |
| Lancashire-14 ITL2 sub-region | 35.6 | -10.3 |
| North West ITL1 region | 36.8 | -7.3 |
| England | 40.3 | 1.5 |
| United Kingdom less Extra-Regio | 39.7 | 0.0 |
Notes: [1] Mid Lancashire ITL3 area is comprised of Fylde, Preston, RIbble Valley and South Ribble local authority areas. [2] East Lancashire ITL3 area is comprised of Burnley, Hyndburn. Pendle and Rossendale local authority areas.
Source: Office for National Statistics - Subregional productivity: labour productivity indices by UK ITL2 and ITL3 subregions, published 17 June 2024.
Page updated 27 January 2025