What financial coverage ought to be pursued when labor productiveness declines? | EUROtoday

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LLabor productiveness has fallen by 6% in France since its peak within the third quarter of 2019, which is appreciable. The causes are in all probability not cyclical or cyclical, however structural, for the reason that decline continued during times of sturdy progress (2018-2019, 2021-2022), nearly zero progress (2023) or violent recession (2020) – and productiveness fell by an additional 0.4% in 2023. These structural causes could be the growing older of the inhabitants, the decline in style for effort, inadequate funding in new applied sciences and analysis and growth.

Like the sharp rise in wages and the rise in vitality costs, the decline in labor productiveness constitutes a unfavourable provide shock, which…