Ignacio González, president of the Spanish Association of Manufacturers and Distributors (AECOC), has called on the country’s government to adopt a coordinated national strategy to tackle persistent unemployment, low productivity and generational inequality.
González was speaking at the opening of the 40th AECOC Congress, in Valencia, and noted that while Spain‘s macroeconomic indicators are positive, with annual growth of 3.1%, underlying structural weaknesses threaten long-term stability.
He also added that while the macroeconomy is showing positive signs, Spain’s micro- or domestic economy is finding the going tougher, with consumption driven solely by two factors, population growth and a boost to the Spanish tourism sector.
This is countered, however, by the financial situation of households and the future of Spain’s labour market, which are both weighing on the economic outlook.
Four key measures
González urged lawmakers to focus on four key areas to accelerate Spain’s economic future:
- Increase labour market participation. Currently, just 59% of Spain’s working-age population is employed, compared with an EU average of 75.8%.
- Improve workforce qualifications. This can be undertaken through expanded dual and vocational training, González noted.
- Urgently address low productivity levels. Spanish productivity has grown at an annual rate of 0.5% per year in recent decades, compared to 1.2% in the OECD.
- Reduce absenteeism once and for all. Absenteeism in Spain costs about €33 billion annually, with 1.7 million workers absent each day. According to González, this is a “complex problem with equally complex solutions”.
Professional development
González also warned about a growing shortage of specific professions in the food/retail sector – such as fishmongers and butchers – and warned that if measures are not taken to address this, by 2030 it will be impossible to replace the generation that will retire.
He also said that “only an increase in productivity will improve the salaries of young people”, and made a call for fiscal stability, saying that “it is necessary to pay taxes, but their increase does not favour disposable income”. Read more here.
