Spain’s labor market continues to improve. And in July it did so on two fronts: unemployment fell by 74,208 people, to a total of 4,046,276 registered unemployed, the best month of July since 1998; and in terms of the number of workers registered with Social Security, that number went up by 58,792 people.
That’s according to data released on Tuesday by the Ministry of Employment and Social Security.
Once the figures are adjusted for seasonal effects – i.e. taking into account the tourist season and agricultural work – the result is still positive: unemployment falls by 44,286 people, while the Social Security puts on 10,500 workers.
Last month, nearly 1.8 million contracts were signed. But the majority of them were temporary: fixed contracts accounted for just 6.9% of the total
That said, the improvements seen in Spain’s stricken labor market in July owe a lot to these seasonal factors, which always have an effect in the summer months. Last month, nearly 1.8 million contracts were signed – a 9% rise on the same month last year. But the majority of them were temporary: fixed contracts accounted for just 6.9% of the total.
The rise in employment in July is due, primarily, to an increase in activity in sectors such as hostelry (51,849), healthcare (44,954) and retail (42,802). In contrast, education usually loses workers at this time of year, and July was no exception, losing 91,788 people.
Spain’s labor market has been plagued by unemployment since the start of the crisis in 2008, when the global financial meltdown began to have an effect
Spain’s labor market has been plagued by unemployment since the start of the crisis in 2008, when the global financial meltdown began to have an effect, and was combined with the collapse of the country’s real estate market.
When he came to power in 2011, Popular Party Prime Minister Mariano Rajoy pledged to create jobs, but according to the latest figures from the Active Population Survey (EPA), a quarterly survey carried out by Spain’s National Statistics Institute (INE), there are now 300,000 fewer Spaniards in work than when Rajoy took office. There are also, the EPA states, 700,000 unemployed who are not receiving any kind of government benefits. There are currently 5.2 million registered unemployed in Spain, according to the EPA.
English version by Simon Hunter.