Spain creates 200,000 jobs, mainly thanks to tourism, to reach a record 20.8 million in work
Economy ·
Unemployment has also fallen by 50,000 to 2.7 million, according to the latest figures
Sections
Highlight
Sections
Highlight
Economy ·
Unemployment has also fallen by 50,000 to 2.7 million, according to the latest figuresJosé María Camarero
Madrid
Friday, 2 June 2023, 11:01
Compartir
The Spanish jobs market is in full swing, as is usual when the tourist season is accelerating in the run-up to the summer. This is reflected in last month's Social Security enrolment data, in which 200,411 jobs were created, reaching 20.8 million for the first time in history. At the same time, the number of unemployed has fallen by 49,260, bringing the total number of unemployed back to 2.7 million, the lowest since 15 years ago when the economic bubble had not yet burst.
The increase in employment and the reduction in the unemployment register is usual in May in Spain, where activity is closely linked to hiring in the service sector, which includes hotel and catering, commerce, and tourism.
However, the labour market has lost dynamism when compared with the momentum recorded during the first four months of the year, from January to April. This period turned out to be much better than usual and now the employment growth figure for May is the lowest since 2016 – excluding the pandemic year – as is the fall in unemployment, also the lowest for this month for a decade.
Employment growth over the last year has been 582,676. Although if only the records since the beginning of the year are taken into account, in five months Spain has created more than 468,184 jobs. The surprising vigour that the economy has been showing since January has meant that in these first five months of 2023 the same number of jobs has been created as in the whole of 2022.
The Ministry of Social Security points out that enrolment has grown by almost 1.3 million people in seasonally adjusted terms. The Minister for Social Security, José Luis Escrivá, has indicated that 21 million new affiliates could be reached "in the months of June or July". Escrivá recalled that "a year ago we were talking about exceeding 20 million jobs". He also highlighted "the resilience of the Spanish economy" which, in his opinion, "is unparalleled" after overcoming the pandemic, the impact of the war in Ukraine and inflation.
Employment growth is particularly dynamic in high value-added sectors such as Information Technology and Telecommunications, whose number of employees has grown by 22.3% compared to before the pandemic, and Professional, Scientific and Technical Activities, which has grown by 13%.
Moreover, temporary employment remains at a minimum of 14% of enrolment, practically half of what Spain recorded before the labour reform was implemented at the beginning of 2022. In the case of young people, this ratio has fallen from 53% to 21%. Part of this statistic is explained by the conversion of temporary contracts to permanent contracts in the form of permanent discontinuous contracts. In other words, workers on permanent contracts who can go through a period of unemployment without being dismissed from the company until they resume their activity. Social Security calculates that of the 4.1 million members who had a temporary contract in the first quarter of 2022 and are still registered, half are permanent, i.e. 2.3 million; 10% are permanent discontinuous; and the rest are still temporary.
The pace of job creation in May is combined with a further fall in the unemployment figures. The number of people registered fell by 49,260 last month, bringing the total number of unemployed to 2,739,110, which is the lowest figure for a month of May since 2008. In the last year, unemployment has fallen by 183,881 people, a reduction of more than 6% in 12 months, according to data from the Ministry of Labour.
Unemployment is falling in all sectors and in all regions. But, above all, it is falling in activities linked to services due to the boom in tourism, and in areas such as the Balearic Islands, precisely for the same reason. Numbers of unemployed have fallen by almost 35,000 people in services, by just over 4,600 in industry, another 4,000 in construction and more than 2,500 in agriculture.
The total number of new contracts registered in May was 1,412,061. In May 2023, 624,853 permanent employment contracts were registered, representing 44.25% of all contracts. Accumulated hiring in the first five months of 2023 has reached a figure of 6,170,023, which represents 1,632,895 fewer contracts (-20.93%) than in the same period of the previous year.
The deputy prime minister and minister of Employment, Yolanda Díaz, said that despite the reduction in unemployment "it is still insufficient, it is still too high".
"We are not resigned, we have to continue to reduce unemployment, giving continuity to the policies that have proved their worth in recent years. The labour reform, the increase in the minimum wage and active employment policies are essential instruments to put an end to a problem that has been dragging on for four decades," Díaz added.
Publicidad
Publicidad
Publicidad
Publicidad
Reporta un error en esta noticia
Necesitas ser suscriptor para poder votar.