Why low labour productivity for Govt Services in UK and USA in 2000s? My labour productivity data for USA and UK show that the "Government services" sector for both countries are below their economies' average.

This trend is observed in the 2000s.

Are there any reasons for the low labour productivity in the sector for the 2 countries?

Referring me to some reliable sources will be helpful too.

Thank you
The biggest issue (in the US national accounts, at least) is the fact that government production is recorded on a cost basis rather than a market value of output basis (due to the lack of market values for many government services). 

From the NIPA Primer, pages 2-3:


  GDP is composed of goods and services that are produced
  for sale in the “market”—the generic term referring
  to the forum for economic transactions—and of
  nonmarket goods and services—those that are not sold in
  the market, such as the defense services provided by the
  federal government, the education services provided by
  local governments, the emergency housing or health care
  services provided by nonprofit institutions serving
  households (such as the Red Cross), and the housing services
  provided by and for persons who own and live in
  their home (referred to as “owner-occupants”).
  
  [...]
  
  In cases where there are no similar market transactions
  available to impute a value of the good or service being
  produced, the output of these services is valued by estimating
  the costs (such as employee compensation and
  purchases of materials and supplies) of producing the
  good or service.


As a result, any direct government production is recorded as though the workers add no value that they do not capture through their salaries. Given the technical difficulties (not to mention the political issues) that arise when one tries to come up with an alternative estimate of the value of government production, this is probably the most neutral approach, and the approach that is most accurate in differences, though it obviously gets the level wrong.