Tiredness is beginning to show in the labor market. The economic pull is no longer so strong. The good news remains because unemployment fell by 42,409 people in June, but, except for 2020 due to the pandemic, in every year since 2011 unemployment had fallen more intensely. In the same month last year it did so in 166,911 people. The good news is that employment grew by 76,948 people last month, a new record for indefinite contracts was achieved, with 783,595, and registered unemployment stood at 2,880,582, which remains at the highest levels low since October 2008, with the start of the financial crisis. Compared to June 2021, unemployment has decreased by 733,757 people (-20.3%). The average affiliation increased by 116,000 people to exceed 20,300,000 affiliates.
Inflation and uncertainty in the war in Ukraine are taking their toll on the labor market, which is beginning to show signs of exhaustion. June is usually a very good month for employment due to the tourist season and construction. However, this June has been the weakest in the last ten years, except for 2020. For example, in June 2019, unemployment fell by 63,805 people, in 2018 it fell by 89,968, and in 2016 124,349 people stopped being registered. on the unemployed lists.
For the first time in 2022, fewer contracts were signed than in the same month of 2021. The total number of contracts registered during the month of June was 1,768,988, which represents a decrease of 29,059 (-1.62%) on the same month of the year 2021. Despite this data, with the increase registered in the month of June, Social Security reaches 20,102,037 affiliates on average in seasonally adjusted terms.
The good news is that a record for indefinite contracts was broken again: 783,595 contracts, which represent 44.30% of the total. After the labor reform, this contracting modality has multiplied by five this month. To understand the magnitude that permanent contracts are taking, 3,281,858 contracts of this type have been made so far this year, which represents an increase of 2,324,951 (242.97%) over the same period of 2021.
Six months after the entry into force of the labor reform (and three after the application of the main innovations in contractual matters), its positive effects in improving the quality of employment continue to be appreciated. In June, the increase in affiliates with indefinite contracts continued to accelerate, registering an increase of 17% compared to a year ago.
Temporary employment has plummeted to historic levels, reaching 20.2% in June 2022. Since January of this year, temporary employment has fallen seven points. Among those under 30 years of age, the percentage of workers with an indefinite contract has risen by 27 points compared to the average for this month, going from 37% to 64%.
The first half of 2022 ends with the creation of 262,935 jobs, discounting seasonality and the calendar effect. Regarding the level of employment a year ago, growth has been 837,799 employed. After having reached the level of affiliation prior to the pandemic, last September, employment has increased by 616,000 more people. The data implies that there are more than a million jobs than at the beginning of 2019.
Unemployment fell in all the autonomous communities with the exception of Andalusia, where it increased by 6,345 people. The strong weight of agriculture in this community is noted. In the set of employment in the primary sector, unemployment increased by 8,863 people, while it fell in services 41,017 people (-1.99%), industry 7,148 (-3.95%) and construction 4,981 (- 2.15%) . The sharpest declines in unemployment occurred in Catalonia (-9,946), Community of Madrid (-7,443) and Galicia (-5,188).
By sex, female unemployment fell by 17,167 people (-0.99%) in relation to the month of May and stands at a total of 1,723,815 women, the lowest figure in June since 2009. Male unemployment is in 1,156,767 when descending in 25,242 men (-2.14%). If we compare it with June 2021, male unemployment falls by 334,962 (-22.45%) and female unemployment falls by 398,795 (-18.79%).