Thinktank urges investment in low-wage sectors to raise UK productivity

Areas such as hospitality and parts of retailing do not face the same competitive pressures as high-end manufacturing, the IPPR says

The government must focus on unloved sectors such as hospitality and retail, if it is to tackle Britain's lamentable productivity record, according to a new analysis by thinktank the Institute for Public Policy Research.

Tony Dolphin, the IPPR's chief economist, said that while the government tends to target support at the highly skilled workers in advanced manufacturing, it is the low-paid staff behind bars and checkouts whose performance may be critical to sustaining Britain's recovery.