Is the link between labour productivity and wage growth still alive in the UK?

UK labour productivity rose steadily at an average rate of 2.2% per year prior to 2008, but has failed to return to its pre-crisis trend since then. Productivity matters. One reason it matters is through its links to the real wage that is affordable to employers. As productivity rises it takes fewer hours of work to produce the same amount of output. This allows employers to increase wages. Higher real wages enable workers to afford higher levels of consumption, enjoy more leisure, and potentially invest more in their health and education.