Almost half of Alicante’s people depend on public income

with progressive population aging and growing service request by citizens to governments public sector continues to stand out as the main income source For an increasingly important part of Alicante families. The commitment to the welfare state, which was key to containing the effects of the coronavirus on economic activity during the last pandemic, is even now 552,000 people from Alicante live on some kind of transfer from the State, be it pensioners, civil servants or the unemployed who receive some benefit. A figure representing 34.3% of the entire adult population, and 45.7% of all income earners that is, without taking into account students or people who are devoted to household chores and do not charge for their work.

In particular, according to the statistics of the National Social Security Institution, Alicante will be as of 1 May. 328,465 premium pension recipients. The number of people employed is 60,000 more than in 2008, which is similar to now (780,000 in the first quarter of 2008 versus 796,000 in the same period of this year). But to this number should be added about 17,000 people from Alicante on non-contributory pensionsbrings the total number of this group to more than 345,000.

For its part, along with supplements for the pandemic, public servant breaking the absolute record in the province 136,500, Based on the most recent data from the Active Population Survey. Again, a figure that contrasts with the 80,000 of 2008, but it’s worth noting that most of the increase has been recorded in the last few years since the outbreak of the coronavirus, so it will be necessary to see what happens. The percentage of these jobs is kept in the future. In any case, this means that public employment currently represents. 17.2% of the total.

Finally, according to the data of the Ministry of Labor and Social Economy, in April 69,803 unemployed from Alicantereceived unemployment benefits or subsidies from a total of 137,400 people.

A Labora stand, Valencia employment service.

Thus, the total number of people residing in the province whose income is dependent on the State is 552,095, the total of those employed in the private sector reaches 655,600, According to the EPA. In other words, 45.7% of the income earners in the province receive state salary.

below average

Although this may seem like a high number, it is actually two points below the national average, There are 15 million recipients of public revenue compared to 16.6 million employees in the private sector. It is also far from the figures seen in other older autonomies such as Asturias, where the number of people living on a salary from the State is higher than those working in the private sector.

In this sense, we limit ourselves exclusively to Social Security data and the so-called interest rate. retirement sustainabilityThe province also offers a slightly better-than-average situation, 2.12 affiliates with additive pension compared to 2018 for the country as a whole, or 1.3 registered in Asturias.

The question that arises from looking at these data is whether the weight of public money is excessive and whether it can be sustained. In this context, professor of Applied Economics at the University of Alicante pigeon Taltavul warns against error Thinking that it is only private sector employees who support public salaries and social benefits with their taxes, on the contrary, in education, health and in general, public services also create wealth and makes a very significant contribution to national GDP.

Therefore, if pre-pandemic data is taken to avoid spoilage, in Spain public expenditure stop about 44% of GDP, Meanwhile many European countriesespecially the most advanced was around or above 50%. In other words, the public sector outweighs the private sector in these countries, which is fine. Rather, these are higher-income countries than Spain.

Regarding pensions, Taltavul points out that the key is not in the number of active employees for each retiree, but in the pension. productivity produced by these workers. Therefore, the key to sustainability in the future will be to enable employment to generate more added value.

The high weight of the shadow economy

Whatever the weight of the public sector, what has not changed in the labor market in Alicante is the high weight that the failed economy continues to hold in the province; Active Population and Social Security Survey.

In this way, although the figures are quite different, both one and the other show a significant increase in the number of people who got a job from Alicante in the last year. Thus, while the number of registered members reached 696,000, the number of people employed according to the EPA rose to 792,100, making a difference of 96,000. Beyond the statistical margin of error and the differences in the criteria applied, it is a fact that a significant bag of irregular employment continues.

The situation is well known to unions, who have demanded increased allocation of the Labor Inspectorate in the state to persecute this fraud linked to industries with deep roots in the region.

Source: Informacion


Please enter your comment!
Please enter your name here


More from author