Saturday, February 24

Unemployment rose by 60,800 people in the summer and 77,700 jobs were created

The labor market cooled down in the summer. Unemployment increased by 60,800 unemployed people in the months of July to September, something unusual for the summer period, and employment increased by 77,700 workers, a figure well below the records for this period of the year, according to the results of the Active Population Survey (EPA) for the third quarter of the year. The INE statistics also show that the historical minimum of temporary workers, of the temporary rate, was reached, which fell to 20.2%, as the Social Security affiliation figures have already shown.

The EPA thus places the total number of people working at 20.54 million people and the unemployed slightly below three million (2.98 million). Both records are at levels from the beginning of the financial crisis, in 2008.

Summer is generally a good time for the job market. Employment is created –although above all temporary–, thanks mainly to the push of tourism and the hotel industry, and unemployment is reduced. The latter, recovery of the post-pandemic tourist season, has also been marked, however, by the inflationary crisis and great international economic uncertainty.

The Ministry of Economic Affairs, headed by Nadia Calviño, underlines this last element in its explanation of the EPA figures. “In an environment of high uncertainty due to Russia’s war in Ukraine, the Spanish economy continues to create jobs,” she highlights.

Given the increase in unemployment in these months, the unemployment rate increased slightly to 12.67%.

The active population increases, that is, there are more people willing to work. In the last quarter there was an increase of 138,500 people, “up to a historical maximum of 23.5 million people, which shows the confidence of workers in finding a job,” highlights the Ministry of Economic Affairs.

Lower job creation

The EPA reflects an increase in workers shy for what is usually usual in summer. In fact, according to seasonally adjusted figures, employment did not rise (–0.06%).

Furthermore, if we look back at what has happened in the last 12 months, employment has grown by 514,700 people (2.57%), which represents a significant decrease since the last statistic. In the second quarter of the year the rate of increase remained very high, at 4%.

The survey also reflects that the boost in employment in the summer was due more to the public sector. “Employment increased this quarter by 52,300 people in the public sector and by 25,400 in the private sector,” indicates the INE. In the last year, however, growth is much higher in private companies: 492,600 people in the private sector and 22,100 in the public sector.

By sectors, employment increased in Services (+114,300 more employed persons) and in Industry (+33,100), while it fell in Agriculture (-60,300 less) and in Construction (-9,400). In the last year, employment increased in Services (430,400 more), in Industry (81,700) and in Construction (35,200), and decreased in Agriculture (-32,500).