Britain’s dismal track record at increasing labour productivity following the financial crisis a decade ago has cost workers as much as £5,000 in missing income, according to official estimates.

The Office for National Statistics said the failure to maintain productivity growth – a key measure of economic output per hour of work – was one of the main reasons for a lost decade of pay growth for British workers. When companies are able to do more with less, they can increase salaries.

Labour productivity slumped by 0.2% in the first three months of 2019 compared to the same period a year ago, the third consecutive quarterly drop, continuing a trend over the past 10 years for sub-standard efficiency gains.

The drop was marginally greater than the 0.1% slide recorded in the fourth quarter. Before the financial crisis, productivity was growing at 2.3% per year.

If productivity had continued growing in line with its long-term trend, and wages as a share of the UK’s economic output had remained constant, average private sector wages would be just over £5,000 higher in 2018 for the average worker, the ONS said.

The findings come amid rising concerns over the dampening impact of Brexit uncertainty on Britain’s productivity growth, as firms put efficiency-boosting investments on ice amid the political turmoil.

Tej Parikh, the chief economist at the Institute of Directors, said: “With political risks clouding business decisions, firms have lacked the confidence to invest in the equipment and technology that drive efficiency gains in their organisations.

“Even if the clouds of uncertainty do lift later this year, it will be a while before pent-up investment activity filters through to the productivity numbers.”

The government has made boosting productivity a key target through the industrial strategy, which is meant to provide support for businesses through state funding and spending on infrastructure.

The UK’s low productivity problem has been exacerbated by the proliferation of low-skilled and low-paid jobs after the financial crisis. Howard Archer, the chief economic advisor to the EY Item Club, said low wage growth had undoubtedly tempted firms to hire more staff rather than invest in technology over the past decade.

While unemployment has dropped to the lowest levels since the mid-1970s, average pay remains below the financial crisis peak, after inflation.

“It also is apparent that many companies have taken on labour rather than committing to costly investment, given the highly uncertain economic and political outlook,” Archer said.

Failure to boost productivity in some parts of Britain has been highlighted among a range of factors behind the Brexit vote, with some northern English towns among the least productive places in Europe. Parts of London have the highest productivity rates in Europe.

According to the Resolution Foundation, UK productivity is now 28% below its pre-crisis trend.

Jack Leslie, the foundation’s policy analyst, said the slump was unprecedented.

“Addressing the UK’s productivity slump is as important, and not unrelated to, addressing Brexit,” he said.