Óscar Arce, Director General Economics at the European Central Bank (ECB), and David Sondermann, Deputy Head of Division at the ECB, examined the recent decline in productivity in the euro area in a blog published on Monday 6 May.
In particular, the authors claim that with the increase in profit margins in 2022-2023, companies have been able to retain their employees for longer.
When inflation peaked in 2022, wage increases failed to keep pace with price rises, and the fall in real wages...