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    Home - Business - The lack of professionals and labor costs and the price of energy is killing the economy
    Business Updated:February 11, 2025

    The lack of professionals and labor costs and the price of energy is killing the economy

    By Olga Winter - EU Newsdesk4 Mins Read
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    The lack of professionals and labor costs and the price of energy is killing the economy

    The lack of professionals and labor costs and the price of energy is killing the economy.  Entrepreneurs maintain the perception of global risk for this first semester of 2025 at the same levels as in the last six months of 2024, while a worsening is noted in the case of Spain.

    Specifically, 51.4% consider that it will remain in Aragon, while 29.4% points to improvement, which represents 1.4 percentage points more in relation to the previous semester. Only 19.3% believe that there will be a worsening, a percentage that drops from 23.4% of the last six months of 2024. In this way, the index of the global situation of Aragon is located in 64.04 compared to 47.81 that is reflected for Spain.

    Why do this perception have?

    The data of the competitiveness survey for the first semester prepared by CEOE Aragón, its business council and Ibercaja, are explained by the perception that companies have in the community in terms of the labor market, whose vision worsens, although it is improved in relation to innovation, new technologies and living conditions, among other aspects.

    The main risk identified by companies in Aragon is the difficulty of hiring due to the lack of availability of adequate professional profiles, with 7.70. A factor that, in addition, has grown slightly in relation to the second semester of 2024, when it stood at 7.43.

    Secondly, the salary costs with 6.81 are located, an index that is maintained compared to the previous data, while the third place is occupied by tax increases with 6.22.

    On the risk scale, Aragon companies have also identified other elements such as the price of energy and raw materials (5.70), as well as the problem of collective bargaining (5.47), inflation (5, 03). In the last positions, the fall in demand (4.68) and the increase in interest rates (3.78) are located.

    The perception, factor A factor

    In addition to the global situation, the survey also evaluates perception of other specific indicators such as prices. In this case, they are also expected to be maintained. The index goes from 53.64 to 51.19 points due to the reduction of expectation in improvement in the Aragonese community.

    The perception in infrastructure in the Aragonese territory is also maintained with an index of 58.89 in the first half of 2025, a figure that is similar to that of the second semester of 2024 when an indicator of 58.87 was recorded.

    However, perception worsens in the labor market, which happens both in Aragon and Spain. The index is at 43.55 in the community by 2025, which is a decrease of almost 4.5 points compared to the last six months of last year.

    Better expectation, although in a moderate way, is in innovation and new technologies in Aragon, where the index reaches 68 compared to 66.79 in late 2024, as well as the institutional quality, which goes from 60.68 of the Second semester of 2024 to 61.23 in 2025. It also improves living conditions. In this factor, the index rises to 54.17 compared to 51.62 of the previous survey.

    Taking into account all these elements and their indicators, the synthetic competitiveness index is in Aragon at 57.30 in January 2025. A fact that reflects a slight decrease over July 2024 when it stood at 57.37. The difference is more notable in Spain, which goes from 49.79 at the end of last year to 46.56 in January 2025.

    Priorities for entrepreneurs

    In this context, companies highlight priorities that are concentrated in three blocks: the improvement in the efficiency of public spending, labor measures and bureaucratic simplification.

    Precisely, improving the efficiency of public spending is the priority, followed by the change in high and casualty,  and simplification of bureaucracy.

    Below the 8 indicating factors, Aragon companies also include other aspects such as reducing the imposition and social quotes; increase legal certainty; promote digitalization; Raise support for R&D, measures against inflation and strengthen social dialogue.

    In the last priorities positions, with scores below 6, they are found to support internationalization, increase infrastructure spending, fight depopulation and enhance sustainability and decarbonization.

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    Olga Winter - EU Newsdesk
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    Olga Winter is a specialist editor writing about current affairs on the EU news desk for WTX News. Based in Brussels she ideally suited to the address the domestic and global affairs of the European continent, with assignments that include expose and In Review features for specialist reports..

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