The government had already predicted it, but for the first time at the beginning of the summer, more than 7,300 jobs have been destroyed and 3,230 more unemployed
Sudden cessation of employment in the middle of summer, a favorable time for the labor market. The government wanted to prepare us for bad news and has already predicted a bad July, but it is worse than expected. Plus, it’s the worst July in all of history, at least since there were records. Never before, not even during a pandemic or during the Great Recession, had jobs been destroyed in the month many Spaniards begin their holidays, and there are no records in the modern series that unemployment rose in the seventh month.
But this was the case in 2022, after many months in which the labor market showed signs of being very robust and too strong despite the war in Ukraine, the price crisis and supply problems. Only in the last two months there has been a slight slowdown, which is now getting worse. And that autumn hasn’t started yet, the period when traditional positions are lost, so all indications are that this has only just begun.
According to data released Tuesday by the Ministries of Social Security and Labor, 7,366 jobs were destroyed in July and unemployment rose by 3,230 people. Despite the fact that job creation has decreased from 5% to 3.8% in just two months, the system remains above the threshold of 20.3 million affiliates, while the total number of unemployed stands at 2,883,812.
However, the government points out that, seasonally adjusted, the number of Social Security members increased by 9,104 in July, boosting employment for 15 consecutive months. In addition, it predicts that contributors will continue to be added in the next two months. “After the exceptional performance in June, jobs will continue to be created in July, likely indicating progress in hiring decisions this summer,” the press release said.
The good news is that seven months after the entry into force of the labor reform, its positive effects on improving the quality of employment are still appreciated. In July, the increase in open-ended affiliates continued to accelerate, with 1.5 million more open-ended affiliates than in the years leading up to the pandemic. For example, the share of affiliates with open-ended contracts reaches 80%, 11 points more than what was common before the pandemic.
In previous years, summer permanent hiring was reduced, compared to the increase observed this year. In addition, positive effects can be seen mainly among young people, a group with usually many temporary workers. Among young people under the age of 30, the percentage of employees with an open-ended contract has increased by 30 points compared to this month’s average, from 34% to 64%.
As a result of employment growth, the ratio of contributors to pensioners reaches a ten-year high of 2.39.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
