Announcements
Productivity in Spain faces a critical challenge for the coming years, with forecasts warning of a decline in 2026. This phenomenon worries experts and companies due to the impact on national competitiveness.
The main causes are linked to low investment in innovation and labor market rigidities, which limit the country's ability to adapt and grow efficiently.
This article analyzes the current context, the reasons behind this decline and possible solutions to reverse the trend, highlighting the role of technology and structural reforms.
Context and data on productivity in Spain
Spain showed notable growth in total factor productivity since 2020, with an annual rate of 1.4%, the highest in 30 years.
Announcements
In 2025 and 2026, productivity per employee is projected with falls of 0.3 % and 0.2 %, remaining 3.6 % below 2019.
Although more than 2.4 million jobs have been created since 2020, productivity per hour worked continues to decline, reflecting extensive growth.
Evolution of productivity from 2019 to 2026
Before the pandemic, productivity was stagnant or declining, but then rebounded due to improvements in capital and digitalization.
Announcements
Labor productivity shows rigidities and will fall in 2025-2026 despite economic growth and job creation.
GDP growth of 2.9% is expected in 2025, but productivity does not follow this positive trend.
Comparison of Spanish productivity with the European average
Spain has grown in total productivity at 1.4% annually since 2020, while the eurozone shows stagnation or decline.
However, Spain continues to lag behind in labor productivity and per capita income compared to the European average.
Although it creates more jobs than Europe, Spanish productive efficiency is lower, affected by structural inefficiencies.
Main causes of the drop in productivity
The drop in productivity in Spain is due to structural problems that slow down innovation and efficiency in the use of resources.
Labor rigidity and low investment in key sectors limit the potential for productive growth, affecting competitiveness.
Furthermore, the lack of adaptation to new technologies and digital models slows down the modernization of the Spanish business fabric.
Low investment in R&D&I and technology compared to real estate
Spain invests less in research, development and innovation than other European countries, affecting its technological advancement.
Capital is preferably directed to the real estate sector, where the perceived profitability is higher despite less impact on productivity.
This decompensation limits digital transformation and reduces the ability to generate products and services with high added value.
Labor market inefficiencies: rigidity and shortage of digital talent
The labor market presents rigidities that make flexible hiring and mobility difficult, limiting business adaptation.
In addition, there is a significant deficit of professionals with digital skills, key to boosting productivity in the digital age.
The combination of strict regulation and lack of talent reduces competitiveness and slows down the incorporation of technological innovations.
Perspectives and solutions to improve productivity
To reverse the drop in productivity, Spain must promote innovation and adapt its productive structure through effective policies.
Technological modernization and advanced training are key to improving the country's efficiency and sustainable growth.
Likewise, it is essential to make the labor market more flexible to promote mobility and optimal use of available talent.
Expected positive impact of digitalization and artificial intelligence
Digitalization and AI promise to increase productivity by optimizing processes, reducing costs and expanding business capabilities.
Its mass adoption can transform traditional sectors, generating products and services with greater added value.
However, this advancement requires continued investment and a favorable environment for technological innovation and digital development.
Necessary reforms in investment, labor market and business costs
It is urgent to redirect funds towards R&D&I, promoting competitiveness and technological development in strategic sectors.
Labor reforms must make hiring more flexible and improve digital training to meet the demand for talent.
Furthermore, reducing business costs and simplifying procedures will encourage investment and productive expansion in Spain.
Conclusion and call to action
Spain faces a decisive challenge to stop the drop in productivity expected for 2026 if it does not adjust its economic and labor policies.
It is vital to adopt a comprehensive approach that combines technological innovation, continuous training and structural reforms to ensure growth.
Only through urgent decisions can the negative trend be reversed and Spain positioned as a benchmark in competitiveness.
Urgency to implement policies to enhance AI and training
Implementing policies that drive artificial intelligence is crucial to modernizing processes and increasing business productivity.
Likewise, advanced training in digital skills is essential to prepare the workforce for the challenges of the future.
These actions will allow a structural change that facilitates adaptation to the new technological environment and improves competitiveness.
Key role of companies and government to reverse the trend
The business sector must lead the incorporation of innovative technology and adopt more flexible and efficient production models.
The government, for its part, must create a regulatory framework that encourages investment in innovation and simplifies business management.
Public-private collaboration is essential to create a sustainable ecosystem that fosters talent and productivity in Spain.
