Spanish Productivity Just Saw First Drop Since Pandemic

Spanish productivity just dropped for the first time in more than two years, with a measure of showing hourly output contracting 0.8% in the final quarter of 2023, according to INE data published this week. Labor Minister Yolanda Diaz is proposing to cut the total maximum working hours from 40 to 38.5 this year and to 37.5 in 2025. While she hopes that this will boost productivity, the economy ministry reckons that it won’t have the desired effect.