The progress of the Catalan economy in the last two decades has not translated into an improvement in wages and purchasing power, according to the June study of Progress and Welfare Indicators by the Barcelona Chamber of Commerce. Despite productivity growth of 12% since the beginning of the century, remunerations measured in average hourly wages are at almost the same level as in 2004, as far back as historical statistics go, just two tenths higher.

“Catalonia has become impoverished. Not as an economy, but when you look at the purchasing power of the people it has stagnated”, has valued the head of the study cabinet of the Chamber, Joan Ramon Rovira. As much as GDP per capita improves in the period studied, there are two factors that explain why wages do not go together. The first affects both here and in other economies, be it Europe or the US It is the loss of weight of the labor factor over activity. And then there are specific characteristics of the Catalan economy, with irregular growth, with periods where the economy grows very quickly and others where it falls sharply. It also affects the change in the composition of the economy, with more weight in services and less in industry.

While the GDP per hour worked, which measures labor productivity, has risen 12% since 2002, wages hardly change. “GDP per capita has increased but the purchasing power, the real salary, has not grown. We have the same purchasing power as in 2004”, something that puts the sustainability model of economic and social prosperity in Catalonia at risk, he highlighted. Mònica Roca, president of the Chamber of Commerce. On the rebound, private consumption is not growing either.

The peaks in the statistics, when the best average hourly wage is achieved compared to 2004, as in 2010 or 2020, coincide with moments of crisis. This is due to the fact that less value-added jobs are destroyed at those times and fewer hours are also worked. Now, with the pandemic over, the sharp increase in prices and the growth of employment in low-productivity sectors -tourism, hospitality- “have returned the real average hourly wage to pre-covid (2019) levels”.

Comparing with countries in the European environment (the 5 main ones in the EU: Germany, France, Italy, Belgium and the Netherlands), remuneration per employee in Catalonia remains six points below and some 11 points above the Spanish level.

Roca acknowledged that “salaries in Catalonia are low, below what would correspond to us.” “We believe that wages should increase, but we have to see how companies can afford it,” he said immediately. Rovira, for his part, pointed out that long-term policies are needed, without dependence on the electoral cycle.

The study is more intended as a touch of attention than to paint a black picture. Because the development of renewables or investment in RD is also suspended. “It is not a catastrophic analysis,” said Roca. In any case, he did want to highlight that 20% of Catalan households cannot afford an adequate temperature in their home, two points above Spain. The statistic has skyrocketed since 2020, when it was over 10%, due to the energy price crisis. “It is a very significant increase,” she has assessed.