Keys to the productivity problem in Spain and its limits for determining wages and working hours

Productivity has occupied the center of economic debate in our country. The new Industry Minister, Carlos Bodi, recently announced the creation of a new National Productivity Council, which he says is one of the biggest challenges facing the Spanish economy. Sumari is pushing the coalition government to implement an investment agreement to officially shorten the working day “without reducing wages” and “improve the distribution of productivity between capital and labour”. Meanwhile, opinions, conferences and analyzes about its stagnation have proliferated in recent weeks, often reflecting a gloomy context, even though activity is increasing and jobs are being created, mainly in high value-added sectors.

But what exactly is productivity? Why does the ministerial body say it is a challenge? And why Summar defends that it offers “considerable scope” to cut working hours without cutting wages, while many economists talk of a structural problem, a historical gap with the larger eurozone economies, and the feasibility. Will the salary not improve?

Source: El Diario

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