The first eight months of 2022 have seen a significant recovery of jobs lost during the pandemic and a dramatic drop in unemployment. The private financial position is also better than before the 2008 crisis.
Euskaraz irakurri: Inflazioaren enbatari eutsi ahal izango gave aurrezki pribatuak?
With a general inflation scenario across much of Europe, consumer pessimism and downward economic growth forecasts, uncertainty is the majority in society. Against this gray horizon, however, there are still positive indicators that seem to place the Basque Country and Navarre in a “favourable” situation to face a crisis that is imminent, according to data from the analysis conducted by EITB DATA.
The pandemic had a strong impact on employment in Hego Euskal Herria, leading to unemployment during the first year; however, the following year, in 2021, with the return to normalcy, the situation gradually recovered until 2022 with very positive data, better than that of 2019, at least until July.
In August, this positive evolution slowed down, which is common year after year, with membership volume typically 1% lower than the year-on-year average in that month. But this 2022, last month, was slightly worse, with 1.5% fewer employees, though it should be borne in mind that the January-July data was exceptional.
For this reason, the Basque and Navarrese economies are in a favorable situation to face the coming crisis, as the “employment base” has recovered after the impact of the pandemic. Likewise, in the face of an external recession such as the one caused by covid-19, it has been shown that the economic and employment fabric in Hego Euskal Herria has been able to recover. And it is that despite the increase in registered unemployment in August, the average value from January to August of this year has brought the Basque Country to a lower level than that in 2019 and Navarre to values comparable to that year.
Fewer private debts…
Given this situation, another indicator to take into account is the level of private debt, which is lower than that available before the 2008 crisis. During that period, the recession had a very important real estate financial component reflecting the high level of private equity. debts, both family and business.
Since 2009, a process of financial deleveraging has been underway to reduce the total credit volume, so that the debt in Euskadi (-25.5%), Navarra (-33.3%) and Spain (-32.5%) is currently much lower. than before the 2008 crisis. Thus, the private sector, which is less indebted, is currently better able to cope with an economic crisis.
…and more financial muscle
The 2008 crisis and the pandemic have led to continuous private savings, both in households and in companies, despite the low reimbursements of recent years. For example, the private sector currently has more resources and the weight percentage of credit on bank savings has fallen from more than 100% to less than that value in 2008 and 2022.
According to the experts, these elements will help counteract the blow of an autumn marked by high inflation and high energy prices, but requiring “transversal, shared and short-medium-long-term solutions”.
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Source: EITB
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.
