Industry was the sector most affected by the 4.11% increase in labor costs registered in the Valencian Community. over the past year, ahead of services and construction. This is evident in data released this Thursday by the National Institute of Statistics (INE), which led to completely conflicting assessments among socioeconomic units. While employers say that this increase harms employment, unions argue that wage increases are insufficient and workers lose their purchasing power.
Cost per worker and month for companies stood at €2,677 at the end of last year, an increase slightly below the national average of 4.2%.. The sector led the ranking with 3,025 euros, after an increase of 5%. This was followed by services with an increase of 3.8 percent, abandonment costs to 2 thousand 591 euros and a 3 percent increase in construction to 2 thousand 729 euros.
The largest increases were recorded in Cantabria with 8.44%.; extremadura with 7.73%; and the Balearic Islands with 6.99%. Murcia is next with 0.26%; Galicia with 1.56%; and Asturias with 2.86%. Looking at the highest costs, the Basque Country takes the first place with 3,564 Euros; Madrid with 3,429; Navarra with 3,302 euros; and Catalonia with 3,214. The lowest are registered in the Canary Islands with 2,475 euros; Extremadura with 2,479; Andalusia with 2,627; and the Community of Valencia itself, with the aforementioned 2,677 euros.
Salvador Navarro, president of the Valencian Community Business Confederation (CEV), points out that the rise in labor costs adds up to costs associated with production, taxation and social contributions, and all this, he argues, “undermines job creation and retention in a context where job margins continue to decline”. According to the employer’s representative, “raising contributions is an unnecessary barrier to competitiveness and economic growth as companies strive to maintain employment and government coffers deliver record collections.”
Yaissel Sánchez, general secretary of the UGT at l’Alacantí-Les Marines, emphasizes that the rise in labor costs is far from inflationary throughout 2022, “for this – he states- It is clear that workers have lost their purchasing power.At the same time, the big companies that set the standard increased their profits.” Paco García, CC OO’s secretary at the same border, has the same opinion, referring to high trading profits and ” The futile effect of this on workers”.
Source: Informacion
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