A black August for unemployment as numbers paying in to social security drop

A black August for unemployment as numbers paying in to social security drop
  • August 31st saw a national fall of 300,000 people with work contracts as summer jobs ended, the biggest drop on a single day since records began

The end of the summer holidays brought some stark data on the numbers of registered unemployed and those in work last month.

As short-term contracts in tourist resorts ended, the traditional decrease in those in work was significantly larger across Spain compared to August last year.

On a single day, 31 August, when the jobs finished, the social security system was informed that 363,017 contracts had ended. The number of new contracts signed that day was 58,375, giving a net loss of contributors into the system of 304,642. This was the biggest daily fall since records began, although most are expected to be hired again on different temporary terms, as usually happens.

A black August for unemployment as numbers paying in to social security drop

The net loss in August overall was 202,966, the worst figure since 2008, at the start of the financial crisis, and there was an increase of 47,047 in registered unemployed, the highest August increase since 2012.

Costa has a bad month too

Malaga province, including the Costa del Sol, was not immune to the negative data either. There were some 50,000 less paying social security contributions in August compared to a year ago, and unemployed registered at Social Security offices was up 1,943 after falling for the past five months.

So far this year 540,820 new work contracts have been signed by employers in Malaga province, however 92 per cent of these were for short-term temporary contracts.

Spokesperson for the Comisiones Obreras union in Malaga, Patricia Laguna, criticised the reliance of the local economy on short-term work. "Clear steps have to be taken urgently so that work is stable and guaranteed full time," she said. The government has said that the data is just "a small slowdown" in the economic recovery.

The number of registered unemployed in Malaga province now stands at 140,958 after the net 1,943 increase.

This official monthly data covers just those registered in the social security-national insurance system or receiving benefits.