The productivity conundrum deepens in the euro zone

Productivity gains are still very low in the euro zone, both in absolute terms and compared with the United States. This is increasingly surprising, because: Companies have major recruitment problems, and this should lead them to increase productivity; Corporate automation and investment in new technologies are increasing; Capital intensity is increasing in the euro zo ne. How can this increasingly low level of productivity gains in the euro zone be explained? Probably by: Deindustrialisation and the creation of unsophisticated service jobs; Ageing of the labour force.