Business · Economy · 4 hrs ago

Work absences add to Spain’s service-sector inflation pressures

Work absences add to Spain’s service-sector inflation pressures

A small restaurant in Madrid hired four cooks after two workers’ absences left meals unserved.

The owner said one absence was due to illness, while another worker quit without warning.

Work absences have risen since the pandemic and are higher in Spain than the European average, with the services sector particularly affected.

Spain’s inflation rate was 4.9% in September, compared with 3.8% across the eurozone.

The article says persistent service-sector inflation, strong demand and the cost of staffing extra workers can all contribute to higher prices.

It also points to a dispute over productivity: output per hour has risen, but output per worker has not.

Absences can raise costs and weaken productivity, because two cooks may do the work that four are paid to cover.

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