The labor market continues adding workers, despite the uncertainty and the inflationary crisis. October leaves several good news in employment, with 103,499 more people affiliated to Social Security on average, in line with previous years of economic growth, and also leaves a historic drop in registered unemployment, which drops by 27,027 people, in a month in which unemployment usually increases after the summer season.
The global image of the month is that of 20,283,786 people working affiliated with Social Security on average, the highest figure for the month of October after Spain managed in April to exceed the historical maximum of 20 million affiliated people.
As for unemployment, it falls to a total of 2,914,892 people registered at the public employment offices (SEPE), the lowest figure in a month of October since 2008.
The increase in registrations in October is in line with the average registered in this period of the year in other employment growth exercises, as can be seen in the following graph. The sectors that push the labor market the most, as usual, is education due to the restart of the school year (139,157 workers, +15.2%) and artistic, recreational and entertainment activities (14,069, +5.15 ).
According to seasonally adjusted data, the indicator that the Ministry of Social Security usually looks at to observe the evolution of the labor market without seasonal effects, employment increased last month by 16,095 people, which was estimated by the Ministry of Social Security. The figure is lower than in previous months (51,000 in September), although Minister José Luis Escrivá has warned that they are observing certain changes in hiring patterns, with advances in contracts from October to September.
If we look back at the last year, employment has increased by an average of 593,197 workers affiliated with Social Security. Thus, the growth rate stands at 3.01%, somewhat less than in the previous month (3.32% in September), as has been the case since the second half of 2022.
Historic drop in unemployment
The fall in unemployment last month is remarkable, since in October the number of unemployed people tends to increase. was only reduced in 2021, in 734 peoplebut this time the fall is more bulky.
Unemployment fell among both sexes, although more intensely among men. Unemployment decreases by 12,128 women (-0.69%), “in a traditionally negative month for female employment”, highlights Labor. Regarding male unemployment, it fell by 14,899 men (-1.26%). In total, there are 1,746,758 unemployed women and 1,168,134 unemployed men.
In the Ministry headed by Yolanda Díaz, they argue that “thanks to the labor reform, the effects of a hitherto very pronounced temporality are softened and stability is gradually consolidated.” The Secretary of State for Employment, Joaquín Pérez Rey, has highlighted that the average increase in unemployment in October is around “60,000 people” to date.
Registered unemployment falls in all economic sectors. It fell in services, with 16,153 unemployed fewer (-0.77%), also down by 11,351 unemployed (-8.47%) in Agriculture, 4,566 unemployed fewer (-2%) in Construction and 551 (-0.23 %) in the industry. It increases only among the “group without previous employment”, by 5,594 people (2.27%).
Indefinite employment continues to advance
Almost one of every two contracts signed in October are indefinite, as has been the case in recent months since the labor reform was approved. In total, 1.5 million contracts were signed, of which 697,335, 45.8% of the total, were indefinite. “They represent more than four times the average of the historical series”, highlights the Ministry of Labor.
On the other hand, the signing of temporary contracts has decreased “drastically”, Joaquín Pérez Rey has underlined. 826,804 temporary contracts were signed, which represents a decrease of 51% compared to October last year, 867,284 contracts less.
From the Ministry of Social Security, they highlight how these new hiring patterns are reflected in the growth of people affiliated with indefinite contracts, considered more stable, in data never seen in the Spanish labor market.
“In October, the increase in affiliates with indefinite contracts continues to accelerate, already exceeding 2.3 million people compared to the end of 2021,” highlights the Ministry of Escrivá, which places the temporary rate at historical lows of 16%, as the mid-month forecast advanced.
Social Security also explains that the most precarious contracts, those of shorter duration, have been substantially reduced. “Affiliates with contracts of less than 30 days have been reduced by more than 2.8 million and the average duration of the total contracts that have caused dismissal in these ten months has increased by 48 days compared to the same period in 2019 ”, he points.