PAS: Lack of labour slows down Slovakia’s economy

Business environment index keep falling

(Source: TASR)

The economic environment in Slovakia continues to deteriorate. This is the main finding of the latest regular quarterly survey of the Slovak Business Alliance (PAS). The business environment index set up by PAS dropped by 1.96 percent quarter-on-quarter to 48.6 points during the third quarter of 2017. The index is based on evaluations by entrepreneurs, who point to progress or decline in individual areas of the business environment. PAS executive director, Peter Kremský, presented the results on December 14.

The most recent survey indicates that the business environment in Slovakia is threatened mostly by a lack of labour.

“The situation on the labour market is worsening,” said Kremský as cited by the TASR newswire. “It seems that it’s very difficult to find people who want to work, are able to work and are willing to work for the salaries offered by companies.”

He explained that as average salaries are rising, and as deductible items aren’t being adjusted, the tax and levy burden is steadily increasing, adding that staff shortages are becoming the number one problem for entrepreneurs.

The unusual development in this area was the most surprising feature, as the most negative rating in its history was recorded (-7.23 percent).

During the third quarter, the worst-hit indicator was once again the Application of the Principle of Equity before the Law (-7.45 percent). The Law Enforceability and Functionality of the Judiciary and the Functionality of the Political System in the State also recorded a similar decline.

Traditionally well-assessed indicators, related to company influence on the environment, reported declining statistics that oscillate around zero. This might signal a slowdown in Slovakia’s economy, according to Kremský.

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