Dataset(s): Unit labour cost and unit wage cost time series

An error has been identified in data used in the Productivity flash estimate and overview, UK: July to September 2025 and April to June 2025 and Productivity flash estimate and overview, UK: April to June 2025 and January to March 2025. The error causes small changes in figures 4, 5, 6 and 7 of the bulletins released in 14 August 2025 and 13 November 2025. For the latest bulletin: - Figure 4 - In 2025Q1 the decrease (-0.1) in RTI hours worked causes an increase (0.1) in RTI output per worker - Figure 5 - In 2025Q1 the decrease (-0.1) in RTI hours worked causes an increase (0.1) in RTI output per hour - Figure 6 - Small (less than 0.01) changes in contributions - Figure 7 - Corrections to hours growth and OPH growths to all sectors. The error also causes small changes in the datasets Output per hour, Output per hour worked by division, Labour cost labour income and the time series PRDY and UCST released in the 14 August 2025 and 13 November 2025. This error was caused by a processing error. Please contact <productivity@ons.gov.uk> for more information. We apologise for any inconvenience caused.

We have identified and corrected an error with the way employment costs were calculated for the aggregation of services industries. This has impacted the calculations of unit labour costs and average labour compensation per hour worked for the services industries aggregation from Quarter 2 (April to June) 2020 onwards. When deducting subsidies from employment costs, the amounts to be deducted were miscalculated, due to the wrong industry aggregation being used. A similar error was found in the calculation of unit wage costs in the manufacturing industry. Manufacturing subsidies were miscalculated due to a human error, which affects the ‘Manufacturing’ from Quarter 2 (April to June) 2020 onwards.

The initial compilation of Unit Labour Costs for the October 7th publication failed to include the various government schemes, introduced during the first lockdown, as part of the ULC calculation. These schemes are employment subsidies and should have been deducted from total labour costs to give a more accurate interpretation of the labour costs of productive faced by producers of goods and services.