This 2023 ‘back to school’ left a mark behind September lazy in creating work. The labor market continues to cool, and although the balance of new employees is positive, it is becoming increasingly difficult for companies to sign new hires. September left a positive balance of 18,295 more workers than August, totaling 20.72 million Social Security members. This was the lowest job creation in the ninth month of the year since 2019. After a record-breaking spring that culminated in several instances of the labor market’s two-year expansion cycle, the winter is particularly cold.
HE unemployment, increased for the second month in a row. Increased by 19,768 people, reaching the total number 2.7 million unemployed registered in their offices. basket. Thus, Spain recorded the second consecutive month of increase in unemployment in a month when it is normal for unemployment to increase. Many seasonal workers go to public employment offices at the end of the summer and at the beginning of the school year to sign up, get their benefits, and start looking for another job.
With this figure, Spain continues to have the highest unemployment rate in the world. European Union, But by internal comparison, this is the lowest unemployment figure seen in Spain in September since 2008. 7 out of 10 people are unemployed As the Ministry of Labor emphasized in its press release, they collect some form of aid or subsidy from Sepe to compensate for their income shortfall; This rate is the highest since 2010.
The increase in unemployment and the simultaneous reliance on Social Security are entirely compatible and occur for more than one month per year. The activation of unemployed people who have not previously registered and who do so to collect some subsidy or aid can also be explained by various reasons, such as enrolling in a training course that requires such a requirement. Or due to the growth of the labor market by the incorporation of immigrants or young people who have just reached the legal working age into the labor market.
Education saves the moon
September, when employment is generally created after the tourism season ends and the new academic year begins, increased the total number of active employees to 20.7 million, with 18 thousand 295 more SSK employees leaving their jobs compared to August. HE trade (-40,024), hostel (-32.223) and public administrations (-39,503) intensified the destruction of employment. The first two completed the last vestiges of the summer season, which they were unable to do in August.
The sector compensates for these layoffs and non-renewal of contracts with a hiring boom, as it does every year. education (+85,817). Colleges, institutes and schools are systematically carrying out mass redundancies at the end of the summer and then rehiring a similar proportion of employees during the ‘back to school’ period, saving many companies and institutions from paying holiday payments to some of those affected.
Therefore, Spain faces the last quarter of the year with uncertainty as to whether it will be able to close the year close to this symbolic level. 21 million members To Social Security. A level that is reached in the best months of the year but has never managed to close any month to date. Historically, October is generally a good month; More jobs are created than in September, followed by a November with negative figures and a more or less busy December depending on the intensity of the Christmas campaign.
Spain is unlikely to end the year with more than 21 million workers. seasonally adjusted dataThe data, which measures employment development beyond month-to-month fluctuations, reveals that Spain gained 12,921 jobs in September. This is slightly better than the Government’s mid-month forecast but points to a gradual slowdown. Last month Spain was growing by 17,000, and a month ago by 16,000. In April, these rates were 128,000 people.
Madrid leads the way in job creation
At the regional level, the Community of Madrid, which has had a negative balance so far in 2023 in terms of job creation, led the way in job creation this September with 47,764 new Social Security members. Although the majority of the autonomous communities remained in the red, Catalonia saved the day and recorded an increase of 9,394 employees; this is five times less than Madrid’s.
In the duel between locomotives, so far this year Catalonia has grown 113,989 employees compared to 41,399 employees in the Spanish capital; So Madrid has contributed four times fewer active workers to Spain so far this year.