Labour productivity continues to decline

This is a very ominous chart. UK labour productivity has declined sharply over the last year. In the second quarter, productivity was down four percent compared to a year earlier.

The reason is straightforward; people in work aren't producing as much. In order for firms to remain profitable, workers will have to receive less wages or employment will have to fall.

so what is it going to be? My guess is that we will soon see a sharp rise in unemployment.