Some might say it's labour hoarding; some might say it's "flexibility"; some might say it's the gutting of the City. Many would think the UK productivity puzzle goes on, and some would just ponder the strong showing of full-time jobs in the latest figures. Here's the view from Nomura's Philip Rush, with some charts (click to enlarge) ... For [2012] as a whole, more than half a million jobs look set to have been created despite next to no GDP growth. Moreover the level of employment is now clearly above its pre-crisis peak (Figure 4), even while GDP languishes below its own peak by a few per cent. The unpleasant by-product of this mix is the persistently poor productivity performance. Our gloomy structural view of this is what has caused our optimism about employment throughout the past few years, despite also forecasting weak growth. It is a strong view that we maintain (Figure 5). Note Rush points to "supply side issues" rather than weak demand which we suspect not everyone will agree with. But then in terms of monetary policy, it's interesting to note how in the tank ("in economic terms there has never been a better time for supply-side reform") the Governor of the Bank of England seemed to be last night. Related link: On the long-lasting hit to UK productivity - FT Alphaville