Jakarta Globe:
Britain Seeks to Plug Skills Shortages Sapping Productivity
8 March 2017
While skills shortages are a crucial element, they are not the only factor behind Britain's weak productivity, said London School of Economics researcher Anna Valero. Low business investment, a lack of focus on exports, limited public spending on infrastructure, and greater difficulty commercializing scientific research than in the United States, have all played a part, she added. Another difference is that Britain's easy-hire, easy-fire jobs market and low labor costs for many roles have made it viable to rely on low-skilled workers – boosting employment levels compared with other countries but discouraging investment in less labor-intensive working methods. This may be starting to change, with Britain's minimum wage now rising more steeply, in addition to new pension charges and the incoming apprenticeship levy for many employers.
Related publications
‘UK Growth: A New Chapter’, LSE Growth Commission Report, February 2017
http://www.lse.ac.uk/researchAndExpertise/units/growthCommission/documents/pdf/2017LSEGCReport.pdf