Economic Costs of Labour Productivity Losses Due to the Inappropriate Use of Social Media and Smartphones: The Case of Argentina

Abstract Research purpose. The objective of this research was to calculate the cost of labour productivity loss measured exclusively as the decrease in Gross Value Added (GVA) associated with distractions caused by problematic use of social media in the workplace, where users continuously check their smartphones for updates. The calculation was conducted using Argentina as a case study, based on national statistical data from the year 2023. Design / Methodology / Approach. The design of this research is quantitative, descriptive, and explanatory, focusing on measuring and analysing labour productivity losses caused by the inappropriate use of social media and smartphones in the workplace. A national statistical series from the year 2023 was used to observe and estimate productivity losses in the context of Argentina. The applied methodology includes the collection of statistical data and the construction of a simple mathematical model to estimate the economic losses (measured exclusively as the decrease in Gross Value Added (GVA)) associated with distractions. Findings. The results of the estimation validate the hypothesis that distractions caused by the use of social media and smartphones decrease labour productivity, representing a cost by reducing the gross value added. The productivity losses resulting from this model for the year 2023 in Argentina account for 12.73% of the gross value added. It can also be observed that sectors of economic activity with high exposure to social media and smartphones experience productivity losses greater than their relative contribution to GDP, while sectors with medium and low exposure suffer losses below their relative weight in GDP. These productivity losses are not only significant in terms of Argentina’s gross value added, but they are likely to be even greater if the analysis includes the time it takes for an individual to refocus after a distraction, a cost not included in the model. Originality / Value / Practical implications. The article provides an estimate of the losses in Gross Domestic Product (GDP) due to workplace distractions caused by the inappropriate use of new information and communication technologies (ICT) in Argentina, a developing country. This analysis not only measures the economic impact of this phenomenon but also opens the door to new discussions about business models and labour relations, specifically regarding how the losses may be absorbed by both employers and employees, who might be trying to counteract the distractions with faster work, but of lower quality and higher stress.