Productivity v2

Key Messages

• Somerset’s labour productivity has increased substantially over the long-term. GVA per hour worked increased by 56.8% between 2004 and 2023. 

• Despite this improvement, productivity in Somerset remains below the UK average. In 2023, Somerset generated £34.53 of GVA per hour worked, compared with £41.87 across the UK. 

• The productivity gap remains significant. The average Somerset worker generated £7.34 less GVA per hour worked than the average UK worker in 2023 (£34.53 compared with £41.87). 

• Economic output per resident has also increased considerably, with Somerset’s GVA per head rising from around £12,600 in 1998 to £26,700 in 2023. 

• However, Somerset’s GVA per head remains below both the South West and UK averages, indicating that economic growth in the county has not kept pace with the wider region and nation. 

• Somerset’s economy recovered following the disruption caused by the COVID-19 pandemic, although the initial recovery appears to have been slower than across the South West and UK. 

Implications

The figures suggest that Somerset’s economy is growing, but not as quickly as the nation.

Productivity is an important measure because it reflects the amount of economic value generated from the work carried out by people and businesses. Over time, productivity can influence wages, business performance, investment and overall economic prosperity.

However, these headline indicators do not explain why differences exist between Somerset and other areas. Factors such as Somerset’s industrial structure, workforce skills, demographic profile, levels of economic activity, rural geography and the ability to attract and retain skilled workers may all play a role. Further analysis is needed before drawing firm conclusions about the causes of the productivity gap.

What Are We Doing?

Somerset Council works with businesses, education providers and other partners to support productivity growth, improve employment opportunities and strengthen the local economy. 

Somerset Growth Hub 

• Provides free business support, including advice on funding, business planning and overcoming barriers to growth. 

Find out more: https://www.somerset.gov.uk/business-economy-and-licences/somerset-growth-hub/ 

Invest Somerset 

• Helps to attract new investment into the county and supports businesses looking to establish or expand operations in Somerset. 

Find out more: https://investsomerset.co.uk/ 

Skills Bootcamp 

• Somerset Council is continuing its Adult Skills Bootcamp programme into 2026/27, providing opportunities for adults to develop skills linked to employment and employer demand. 

Find out more: https://skillupsomerset.org.uk/skills-bootcamps/ 

Green Business Support 

• Initiatives such as Go Green and the Somerset Green Business Grant help small and medium sized businesses to reduce energy use, lower operating costs and invest in more efficient equipment and processes. 

Find out more: https://www.somerset.gov.uk/climate-nature-and-water/business-industry-and-supply-chain/ 

Together, these programmes aim to support business investment, improve workforce skills, reduce barriers to growth and encourage the creation of higher-value jobs. While measures such as GVA per hour worked and GVA per head are influenced by a wide range of factors, these initiatives contribute to creating the conditions for stronger and more sustainable economic growth across Somerset.