In full negotiation of the new increase in the SMI, Cepyme calculates that the increases recorded since 2018 have resulted in 71,600 workers losing their jobs and almost 146,000 stopped creating jobs.
There are only days left before the government has to make a final decision on the increase in the minimum wage (SMI) for 2023, as this is due before the end of the year. And in this context of difficult negotiations with the social agents, Cepyme, the employers’ association for small and medium-sized businesses, is launching a report warning that the latest minimum wage increases have led to the disappearance of 217,500 jobs.
According to his calculations, the “sharp rise” of the SMI since 2018 (since then recorded an increase of almost 36%, the highest among the most developed European countries) has led to 71,600 workers losing their jobs and avoiding the creation of 145,900 new jobs.
The minimum wage has evolved from 736 euros in 2018 to the current 1,000 euros in 14 payments, an increase of 35.9% in four years. With these data, the confederation of SMEs warns of the “damaging impact” on the business fabric, especially for small and medium-sized companies, and even more so in a context where companies’ costs have been rising above 20 for several months. % while sales are slow, they argue.
In addition, they explain that the “non-moderate” increases in the SMI are affecting employment, especially of lower-skilled workers, harming these most vulnerable professionals. The increase over the past four years caused a “strong drag on the employment of basic jobs,” says the report, describing that since 2018, the rate of job creation in these jobs has slowed to 2.8% compared to the percentage between 2013 and 2018 was 13.4%. They also emphasize that nine out of ten jobs destroyed by the rise in SMI were for women.
In terms of costs, Cepyme emphasizes that an increase in the minimum wage entails a new increase in contributions and recalls that minimum contribution bases have increased by almost 40% since 2018, and with the new increase in the SMI they will represent an increase of 46 % add since that year.
In another recent report, the confederation also pointed out that the Spanish SMI is the most expensive in Europe, not in terms of amount, as there are seven other EU countries that pay more than 1,000 euros here, but in relation to the average salary received by national workers. With data from Eurostat, the employer emphasized that the Spanish minimum wage is higher than 54% of the average wage, putting it at the top of Europe. Despite the fact that the European Social Charter recommends that the lowest compensation under the law is 60% of the average salary and the government has promised to meet it next year, no EU country is complying and only Greece comes out on top together with Spain the 50% off .
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
