Rising Absenteeism Poses Challenges for Canary Islands’ Economic Growth

In a recent address, Santiago Sesé, the President of the Santa Cruz de Tenerife Chamber of Commerce, highlighted a paradox facing the Canary Islands: while the region is experiencing a significant uptick in employment, it is simultaneously grappling with alarming absenteeism rates. This duality presents a complex challenge for local businesses, which are now feeling the strain of increased operational costs and management difficulties.

Impact of Absenteeism on Local Businesses

Sesé articulated that the rising rates of absenteeism are not merely a statistic; they represent a tangible threat to the operational efficiency of businesses across the islands. He explained that when employees frequently miss work, it leads to heightened operational costs, as companies must often pay for overtime or hire temporary replacements. This situation can create a ripple effect, complicating internal management structures and leading to decreased productivity.

Moreover, the emotional toll on small and medium-sized enterprises (SMEs) cannot be overstated. Business owners are increasingly feeling overwhelmed by the challenges posed by absenteeism, which can erode morale and create a sense of instability within the workforce. Sesé emphasized that the cumulative effect of these issues can stifle innovation and growth, leaving many businesses struggling to maintain their competitive edge.

Call for Collective Action

Addressing the issue of absenteeism, Sesé underscored the necessity for a collaborative approach involving public administrations, businesses, and social agents. He noted that without a united front, the problem is unlikely to resolve itself. The competitive landscape for many companies is already being affected, as absenteeism creates gaps that are difficult to fill, particularly in sectors that depend on specialized labor.

Finding temporary workers to cover for absent employees has become increasingly challenging, further exacerbating the situation for businesses that are already stretched thin. Sesé’s call to action highlights the urgent need for stakeholders to come together and devise strategies that can effectively mitigate the impact of absenteeism on the local economy.

Employment Trends in November

These concerns arise in the context of the latest labor market statistics for November, which revealed a decrease in unemployment by over 1,000 individuals. This decline brings the total number of unemployed persons in the Canary Islands down to 146,649. Additionally, the number of new affiliations to Social Security rose by 6,139, leading to a record high of 964,517 average contributors.

While Sesé viewed these statistics as a positive indicator of economic vitality across various sectors, he also cautioned that such growth comes with its own set of challenges. The increase in employment opportunities must be matched by efforts to address the structural issues that can hinder long-term sustainability, including the rising rates of absenteeism.

Strategies for Sustainable Economic Development

In light of these developments, the chamber president emphasized the critical need for enhancing productivity within the Canary Islands. He advocated for a shift towards a sustainable economic model that not only secures the jobs that have been created but also provides businesses with the necessary conditions to thrive. This model should aim to alleviate the burdens imposed by structural issues like absenteeism, ensuring that companies can operate efficiently and effectively.

Sesé’s vision for the future of the Canary Islands involves fostering an environment where businesses can flourish without the constant threat of absenteeism undermining their efforts. By prioritizing productivity and collaboration among stakeholders, the region can work towards a more resilient and sustainable economic landscape.

Key points

• Santiago Sesé serves as the President of the Santa Cruz de Tenerife Chamber of Commerce.
• Rising absenteeism rates are becoming a significant concern for local businesses in the Canary Islands.
• Absenteeism leads to increased operational costs and complicates internal management for companies.
• Unemployment in the Canary Islands decreased by over 1,000 individuals in November.
• The number of Social Security contributors reached a record high of 964,517.
• Collaborative efforts among public administrations, businesses, and social agents are essential to address absenteeism.
• Improving productivity is crucial for achieving sustainable economic growth in the region.