How to Increase the UK’s Productivity? Essay

The UK government can adopt various cede side measures to pull ahead increase the productivity in workplace.First, it is absolutely full of life to ensure that the education domain continues to receive large amount of reinforcement from government. In fact, it is currently the third largest recipient of budget after amicable security and healthcargon and should be in such position for legion(predicate) years to come even when the economy is not performing. Billions are spent onto edifice schools where literacy rate is relatively lower, training teachers, developing new plan or courses that suit industrial need and providing loans to undergraduates to increase their enrolment rate. The mathematical function is to increase the quantity and quality of workforce. Being to a greater extent educated enables an exclusive to work independently, more efficient and understand complex instructions. Productivity faulting between UK and rival economies a care France and Germ whatev er will narrow.Next, the government can further tame the trade unions. Although we have not seen strikes like those during the era of Margaret Thatcher, industrial dispute that takes place from time to time is still a major(ip) concern for many employers. Consider the recent strikes by cabin crews in British Airways, immigration officers in ISU (Immigration Service Union), HP workers and many more. When workers jib to work, there will be lesser output on periodical basis. As such it is justified to have more laws passed in sevens to secure the interest of firms. For instance, firms essential be allowed to take stricter action against workers or union if they cause severe losses or making it more difficult for unions to call for strikes.Between the two measures discussed, it is argued that public investment onto education is a better policy. This is because UK economy has moved away from industries that require manual of arms skills to those that need mental skills. In other word s, UK has moved away from manufacturing sphere to services sector like banking and finance and also quaternary like research.Today, size of service sector is about 76% of her GDP compared to manufacturing sector of 22%. Having said so, critics argue that it has an extremely long effect lags. This is because the building of schools and having a targeted number of skilled graduates are not an overnight effort. It whitethorn take as long as a decade in front noticing any change in the level of productivity. Also one must consider that UK experiences one of the highest numbers of brain drain. It loses its professional workers to other slope speaking countries like US, Australia and New Zealand. In such circumstance, AS may not shift rightward by muchAs a upshot of fact, there must be some balance in queen between the employers and elbow grease unions. Although the weakening of unions creates a more flexible labour market (easy to hire and fire without negotiation with trade union) and lower crop up the costs of production, some firms might abuse the power given. For instance, workers in true industries may be underpaid or in some circumstance retrenched without any good reason and justified compensation. In some cases, employers may bar wages of workers for their own good such as taking star sign fat bonuses. Furthermore, it is already difficult to organise a strike callable to the structure of economy. Workers in services sectors, say a bank are not as clustered and large in numbers like those in factories .