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The Progressive Policy Think Tank

Chart of the Month: Productivity in low-wage sectors

The objective of the government’s modern industrial strategy is to “improve living standards and economic growth by increasing productivity and driving growth across the whole country”. Our analysis suggests that to achieve these goals industrial strategy should look beyond high-tech manufacturing and knowledge-intensive services to the rest of the economy, including sectors, like retail, hospitality and cleaning, which are characterised by high levels of low pay.

The IPPR Commission on Economic Justice will be exploring ways in which we can close the productivity gap with western European countries in the low-wage sectors.