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HomeLatest NewsUnemployment marks lows since 2008 despite moderation in job creation

Unemployment marks lows since 2008 despite moderation in job creation

Date: March 1, 2024 Time: 06:36:58

June has consolidated the positive path for the employment quarter that began at the end of the first of the year, unemployment is at its lowest since September 2008, while Social Security registrations set a new all-time record after exceeding for nine days -between June 12 and 21- the barrier of 2.9 million affiliates. However, in the first month of summer a moderation in the creation of jobs is glimpsed, since it adds 54,541 average members, compared to the more than 200,000 new registrations registered in the month of May. Which leaves a result of 20,869,940 average affiliates to Social Security, while the seasonally adjusted data, which does not take into account the variations marked by the calendar, remains at 20.6 million high.

In parallel, the data for unemployed chains four consecutive months of decline by falling by 50,268 people in the last month, resulting in the lowest number of job seekers in fifteen years. In addition, unemployment fell across the board throughout the territory, despite the fact that the sharpest drops were in Andalusia (-8,780), Catalonia (-6,359) and Galicia (-5,410) thanks to the pull of the tourism sector. In percentage terms, the Community of Madrid is the territory in which the number of unemployed falls the least, barely 0.8%, while in Asturias this drop drops to 4.6%. While the number of self-employed workers grows for the fifth consecutive month, adding 6,665 registrations to the RETA.

On the other hand, by economic sector, Agriculture registered a slight increase in the number of unemployed (220), while Services accounted for most of the fall registered in the entire country, as the number of unemployed in this sector decreased by 42,133. people For its part, Construction registered a drop of 1,688 unemployed and Industry 4,888 unemployed. Employers have been denouncing in recent months an important labor force to cover concentrated personnel demands in these sectors, which has led the Ministry of Inclusion, Social Security and Migration to explore new ways of regularizing foreign workers; a movement that presented discrepancies with the work portfolio of Yolanda Diaz.

44% of new employment contracts are permanent

The labor reform agreed by the social partners in 2021 substantially reduced the number of contracts signed each month, by favoring indefinite labor agreements over temporary ones. However, this rule does not prevent the months with the greatest seasonality, such as June, from presenting changes in this pattern. In the last month, permanent contracts represent 42.32% of the total, three percentage points less than in May, out of a total of 1,492,803 contracts. However, the Ministry of Labor and Social Economy celebrates that 7.6 million contracts have been signed in the first quarter, which is almost two million fewer than in the same period in 2022.

The last major labor reform, not approved, breaks the classic trend of the Spanish labor market whereby the number of registrations and withdrawals from Social Security varies significantly on Monday and Friday of each week and on the first and last days of each month. On June 30, more than 264,000 workers were laid off, which may be a symptom that despite the reduction in contractual temporary employment, “effective” temporary employment has not decreased to the same extent. Despite the will to improve, from the departments of José Luis Escrivá and Yolanda Díaz they defend that they cannot completely alter the functioning of the labor market that is linked to the majority economic activity: tourism. Although, the average duration of contracts has increased by 29% between January and May compared to the same period in 2019.

Both ministries highlight the evolution of employment in the segment of young people, among whom Social Security affiliations have warned double what the population measure has done since the entry into force of the labor reform. However, the most noticeable factor is the drastic reduction in temporary employment by 31 points, to 22%, which does not prevent Spain from once again leading the youth unemployment rate in the European Union environment. The Department of Labor highlights that the number of unemployed young people under 25 once again scores a record low, standing at 184,491, but the rate of 28% is close to doubling the European average.

❗️ A new month in which we see a very positive evolution of employment. In June, unemployment has decreased by 50,268 people and we are already at the lowest figure since 2008.

Thanks to the labor reform we are creating quality and permanent employment. pic.twitter.com/XJOOvNjGHj

— Yolanda Díaz (@Yolanda_Diaz_) July 4, 2023

Yolanda Díaz’s portfolio has also made public the coverage data of the unemployment protection system, that is, the percentage of the last salary that covers the monthly unemployment payment. This rate stood at 64.93% in May 2023, more than four percentage points above the same month in 2022, leaving an average cost per beneficiary of 1,064.2 euros, which brings the total cost up to 2,734, 3 million euros This coverage rate has been questioned by some study centers such as those dependent on CEOE, who understand that it should be lower over time, although of a higher amount during the months it is received, to encourage active search of employment or

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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