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Small drop in registered jobless total on Costa in May after the large rise in March and April

Small drop in registered jobless total on Costa in May after the large rise in March and April
/ SUR
  • As people slowly start to get back to work, the government is considering extending emergency furloughing for worst-hit sectors

After the unprecedented hit on the labour market in March and April, the winding down of restrictions from May has meant some of the lost jobs have been recovered.

In Malaga province, including the Costa del Sol, May closed with a fall of 1,659 people who were registered as looking for work and an increase of 5,702 people in work and paying Social Security. There were also 115,785 workers furloughed locally on the ERTE scheme, a drop of 14,328 on April. The gradual opening of shops, restaurants and other businesses has seen the labour market start to wake up.

Small drop in registered jobless total on Costa in May after the large rise in March and April

Despite the small increase in those in work, there are still 51,773 fewer workers paying into Social Security than the same month last year. The year-on-year fall in affiliation locally is 8.16%.

Some 190,744 people in Malaga province were registered in the regional employment offices on 31 May, 49,739 more than in May 2019. This excludes workers with ERTEs and also 62,071 self-employed who have claimed temporary relief. The total registered as inactive was therefore 368,000 at the end of May, which means for every ten working there are six who are not and want to work.

Extending ERTEs?

The May official data has shown that the ERTE mechanism has so far been effective in stopping the long-term destruction of jobs. However government, unions and bosses are concerned that once the ERTEs expire, real job losses will increase.

The government suggested this week that it is considering extending the legal limit for people to stay on crisis ERTEs until the end of September, instead of the current expiry date on 30 June. This would apply in the worst-affected sectors.

Business leaders have asked the government to go beyond this date to the end of the year to give some stability to firms that will see their income take longer to recover.