Monday, July 4

The recovery will be insufficient to return precovid employment and wealth to Spain before 2023, according to the OECD

The strong recovery in Spain underway in 2021 and expected for next year will not be enough for the economy to recover the levels of employment and income per capita prior to the pandemic before 2023, according to the Organization for Cooperation and Development. Economic (OECD).

“The strong economic and employment recovery experienced in 2021 and projected for 2022 will not be enough to reach the precovid level of GDP per capita and employment rate (63.5%) before 2023”, says the ‘think tank’ of the richest countries in their report ‘Employment Outlook 2021’.

Likewise, according to OECD projections, the unemployment rate in Spain will remain at the end of 202 around six tenths above the level of unemployment registered before the pandemic.

On the other hand, the OECD warns that the crisis has affected the most vulnerable, including workers in low-paid jobs and with temporary contracts, people with low educational levels, and young people, highlighting the effectiveness of public aid, such as the subsidy unemployment and ERTE, to protect income.

In this sense, it points out that the maximum use of ERTE in Spain was comparable to that of other OECD countries, around 20% of the pre-COVID employment level.

However, the organization points out that vulnerable people who lost their jobs at the beginning of the pandemic are currently in a situation of long-term unemployment, while the recovery of their working hours is slower than that of workers with greater ties with the labor market.