Assess the importance of education and training to improve labour productivity in the UK.

(NOTE: This is an "evaluate" question so make sure to have a counterpoint i.e. HOWEVER...)

Labour productivity = output per worker over a period of time (e.g. 2 cars a day). Labour productivity has a direct effect on the productive potential of an economy. Investing in education will improve skills of labour force. Skilled workers will have higher mobility and this will translate into higher labour productivity. However, the benefits from education will have a time lag as it takes time to complete qualifications - this also implies an opportunity cost as time spent in education is time spent out of work. Investment in education is not the only policy capable of improving productivity - government could invest in new technologies instead.

TK

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