Few days ago we discussed of the last Istat report in which Italy is last in EU for labor productivity. But what does it really mean? When we talk about productivity we mean the ability of a system to create jobs and growth. The health of a nation is considered based on the level of productivity achieved, that is the amount of goods and services produced by individuals who work in that country.
When this indicator goes down we are in the presence of a systemic crisis. When it rises, the engine of a country – let’s say in this way – is on. But the problem is that, even when they mention rising, the Italian engine speeds are always smaller than those of the rest of Europe. Going on with the automobile comparison, we will never have a car that can compete with the other.
In the last period in Italy the growth has been achieved through the enlargement of the employment base, but unfortunately made up in large part by strong precarious work, underemployed, and with the evolution of the crisis, unoccupied and unemployed.
The problem of lack of growth in productivity has always been an unresolved Italian problem. In 2008, in a comparative study of 30 countries, the OECD has estimated that in the last decade Italy was the country among all where the hourly labor productivity grew less. this meant higher unit costs of foreign competitors and therefore a disadvantage in international competition. At the same time, also it recorded a lower growth of income per head for Italian citizens and therefore a limitation to the improvement of their material well-being. Less shopping, less economy.
To be honest, they do not need market analysts to realize that Italian families have stopped spending (although some small recovery in this sense exists), that companies are suffering and that stable employment does not increase. The variations are negative for professional activities, construction and education. In short, the pillars of the past, home and school, they no longer hold. And even professionals are in trouble. A lugubrious photograph, which should lead to boost the economy with long-term actions in support of business and employment. This is our challenge… unfortunately from 20 years.