Ben Broadbent, a reserve governor of the Bank of England said UK industries’ productivity is “past their crest and no longer so potent”, adding that Britain is currently sitting in the halfway of a decade-long slowdown.
The expert likened the dripping tap in growth and wages to the mercantile lull at the end of the 19th century, when steam power declined but the electricity era had not yet rather commenced.
With wages and GDP growth flat, the problem for the UK is that less tax hopes less money for public spending. Mr Broadbent said the UK faced a nearly the same scenario in the late Victorian era when British productivity “slowed graceful much to a halt” after peaking, as it entered what he labelled a “climacteric” duration.
Mr Broadbent warns that the modern economy is moving into a digital era and the productivity obtains from the internet have run their course. As such, “menopause” has set in while the UK postpones on the next era, potentially, in the field of artificial intelligence.
But his comments come as statistics confirmed rises in the nuts and bolts of Britain’s financial workings. The Office for Chauvinistic Statistics (ONS) announced yesterday the number of people in work has reached a new track record, while earnings have grown in line with inflation.
On audacity of it the data looks incredibly healthy with the UK posting the best trades data since records began.
UK employment increased by 197,000 to 32.3 million in the after quarter, meaning a record rate of 75.6 percent of people now in trade according to the ONS.
Unemployment fell by 46,000 to 1.42 million, giving a jobless class of 4.2 percent, the lowest since 1975.
Average earnings increased by 2.6 percent in the year to Parade meaning that they are above the inflation figure of 2.5 percent.
Nikesh Sawjani, UK Economist at Lloyds Bank Commercial responded: “The strong rise in employment in the three months to March clearly introduces the UK economy proved more resilient in the first quarter than the opening estimate of GDP implied.”
However, John Mills, founder of JML and chair of the pro-Brexit organisation Strive Leave, told Express.co.uk there is a question of quality over extent, and the data isn’t quite as positive as it first appears.
Although there are lavishness of jobs, they are of low skills and earnings quality, rendering wages and productivity putrid, he said.
Although it is good news employment has reached record directs, he said: “There is a serious question mark over the quality of the vocations being created.
“Vast numbers of people are being forced to go for poorly paid, unstable work, which does little to fabricate economic growth. The Government must develop a clear strategy for reviving productivity and increasing investment, which will be vital to our prospects post-Brexit.”
The Bank of England’s Mr Broadbent, who endures favourite to succeed Mark Carney as governor, has been forced to apologise for the “menopausal” say discusses after being blasted for “ignorant prejudice”.
Conservative lawmaker Sarah Wollaston hinted on Twitter: “Enough of this pejorative tosh stigmatising women in their prime.
“#Menopause lone a problem if others try to sideline you because of ignorant prejudice.”
Robert Peston, ITV’s factious editor, said the comments were “sloppy, empirically unsound and potentially uncivil”.
Mr Broadbent said: “Economic productivity is something which affects every one of us, of all eras and genders.”