Heatwave could cost economy £190m a day
Economists warn that sick days and a fall in productivity could cost the economy millions of pounds every day as workers slow down and pull 'sickies' so they can relax in the sunshine
30 June 2009
AS LONDON basks in the hottest day of the year economists are warning that the heatwave could cost the economy up to £190m a day.
As temperatures hit 32C in the capital experts predict that scores of sunseekers will take “sickies” this week to make the most of the warm weather.
Hundreds of thousands of workers are expected to have taken at least one sick day by the end of the week and productivity is due to drop by up to a third.
The first big heatwave since 2006 is likely to result in lost productivity worth up to £162m every day, according to The Centre for Economics and Business Research.
And a further £4m could be lost through staff arriving late to avoid sweltering on trains during rush hour – and leaving early to make the most of the sun.
"The heat causes people to slow down and leave earlier and hence daily productivity will be slower"
Spending is also expected to fall by £6m and a further £15m will be added to losses as a result of workers pulling sick days.
Ming Choo, a CEBR economist, said: “Productivity is essential to the proper functioning of the economy.
“The heat causes people to slow down and leave earlier and hence daily productivity will be slower.”
The highest temperatures yesterday were recorded at Wimbledon’s Centre Court and Heathrow where the mercury hit 31C.
The high temperatures are expected to last until Saturday and are expected to peak on Thursday when they will reach 33C.
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