Productivity latest publications
Labor productivity in Spain is counter-cyclical, unlike in the majority of developed economies. This phenomenon is mainly due to the poor functioning of the labor market. There is an urgent need to adopt reforms to boost sustained productivity growth
The rise of the New Digital Economy is altering the dynamics of economic growth. Using cloud computing services fosters productivity and innovation by providing flexibility and scalability. It is a shift from owning ICT assets to purchasing ICT services.
Now that the economic slowdown in Spain looks to be giving way to GDP growth (forecast to be between 1.5% and 1.8% by 2020), discussion has turned to employment creation in the coming quarters.
In August, 36.6 million new formal jobs were registered according to the Mexican Social Security Institute, with this figure a total of 20.4 million insured workers were registered. From January to August 342 thousand new jobs were created, 46.9% less compared to the same period of the previous year.
In April 2019, formal employment reached a figure of 20.38 million, representing an annual growth rate of 2.4%. This is the lowest rate since 2010 in the aftermath of the last recession and confirms the decreasing trend of formal job creation since May 2018.
The question with which I begin this column has two messages at its core: trust in Colombia exists at the international and local level and we must maintain that in the coming years. Maintaining trust is an ongoing process and things need to be done every day to achieve it.
About the recently introduced funding law in Congress, many healthy debates have arisen about the role it could play in the recovery of the economy. The articles have some things that could help, but it is vital to emphasise that the right path to take is to improve productivity beyond the tax issue.
The Spanish economy is on a clear expansionary path. Activity and employment are recovering, but low levels of productivity persist, and this depresses competitiveness and long-term growth potential while keeping wages low. And yet this is nothing new.