Announcements
The Institute of Economic Studies (IEE) warns about a significant drop in Spanish productivity towards 2026, which puts its competitiveness at risk.
This trend can affect the capacity for economic growth, employment and social well-being, if appropriate measures are not taken.
Announcements
It is urgent to analyze the root causes and propose solutions that allow this situation to be reversed before it becomes irreversible.
Causes of the drop in productivity in Spain
Productivity in Spain shows a structural drop with a negative projection for 2025 and 2026, affecting efficiency and competitiveness.
Announcements
This reduction represents a decline of 3.6% compared to pre-pandemic levels, placing the country at a worrying point.
The causes are related to deficiencies in investment, labor rigidities and high costs that limit reinvestment and modernization.
Lack of investment in R&D&i and technology
Spain invests less in research, development and innovation than the European average, slowing the adoption of advanced technologies.
Insufficient investment limits technological updating and improvement in efficiency, keys to increasing productivity.
This situation affects the ability to implement automation and artificial intelligence, essential today.
Ineffective labor market and management rigidities
The labor market shows regulatory rigidities and an increase in labor costs that hinder flexibility and efficiency.
Regulations such as mandatory registration of hours can hinder adaptation, especially in small and medium-sized companies.
These factors prevent optimal allocation of human capital and reduce the productive potential of labor.
Contrasts in productivity and economic growth
Despite some technological advances, labor productivity per employee remains stagnant, limiting overall economic growth.
This stagnation generates a disparity between the improvement in productive efficiency and the country's slow real economic progress.
The lack of momentum in key sectors contributes to uneven and less sustainable economic growth in the long term.
Improvements in total factor productivity vs. stagnation per busy
Total factor productivity shows slight improvements, suggesting advances in technology and management at a global level.
However, productivity per worker does not grow, indicating that improvements do not translate into greater individual performance.
This contrast points to the need to focus on the quality of work and not just technological progress.
Comparison with European trends and lagging sectors
Spain is below the European average in productivity, with a gap that widens in traditional sectors.
Lagging sectors, such as construction and certain services, drag the average and limit growth potential.
Uneven progress between sectors makes it difficult to reach competitive European levels and requires specific sectoral reforms.
Solutions to reverse the drop in productivity
To stop the decline in productivity, it is crucial to adopt advanced technologies that boost efficiency and modernize the productive fabric.
It is also necessary to reform the labor framework to improve the quality of employment and adaptability to market changes.
The combination of technological innovation and structural reforms can revitalize the economy and avoid prolonged losses.
Implementation of AI and advanced technology
The adoption of artificial intelligence and new technologies can automate processes and optimize resources in various sectors.
These tools increase precision, reduce costs and enhance individual and collective productive capacity.
Promoting its use is key to closing the technological gap with Europe and raising the national competitive level.
Productivity measurement based on quality of hours and labor reforms
Measuring productivity by considering quality and not just the number of hours worked offers a more accurate view of performance.
Labor reforms that make time management more flexible and improve conditions also increase motivation and effectiveness.
These measures allow work to be adapted to current needs and enhance human capital throughout the economy.
Conclusions and call to action
The drop in productivity in Spain represents a serious risk for economic growth and social well-being.
It is essential to act promptly to avoid a prolonged negative impact on national competitiveness.
The adoption of technologies and labor reforms must be coordinated and urgent to reverse this trend.
Impact on GDP and employment if action is not taken
If changes are not implemented, GDP could stagnate or even decrease, with negative effects on employment.
The lack of productive improvements limits the creation of quality jobs and increases economic vulnerability.
This could lead to less investment and greater difficulties in competing in the global market.
Need for urgent reforms and business participation
Labor reforms must make conditions more flexible and promote a favorable environment for innovation and productivity.
The active participation of companies is key to implementing advanced technology and improving internal management.
It is essential to promote public-private alliances that enhance resources and accelerate the modernization of the productive fabric.
