What Alicante’s employment record hides: The informal economy has reached historic heights

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HE employment record reached in the province in the third quarter There is a B side. Strong growth in activity after the epidemic was stopped, significantly increased collapsed economy where he was last summerone of the highest levels of the last ten years.

Specifically, comparing the latest Active Population Survey data showing a presence of 870,300 workers in the province in the third quarter, compared to the average Social Security commitment in September—730,102—results in approximately: 140,000 Alicante residents worked without a contract or relevant self-employment registration. This was a higher figure than usually recorded in the region before Covid (ranging from 100,000 to 130,000) and Second largest in the historical series since 2012, but it is still behind what was recorded in the summer of 2016, when the distance between both statistics reached 146,000 people.

Although the figure cannot be taken literally due to the different methodology they use – for example, the EPA collects the status of: occupied by their place of residence And Membership reflects where they are recruitedThis means there are also provinces such as Madrid where there are more EPA members than employed because workers travel from neighboring provinces every day – experts agree: The difference between both indicators approximately reflects the volume of irregular employment. and above all, disposition underground economy

Evolution of working people in Alicante according to EPA and adherence to Social Security. Information

So, for example, linked constraints Pandemicirregular employment in the province dropped to 65,000 peopleAccording to the same data cross-section, activity will recover quickly once it returns to normal, reaching levels so far higher than those in 2019.

touristic provinces

This development, according to a UA Department of Applied Economics professor and labor market expert Hipolito Simon“It has to do with Features of the economic structure of the provinceThis makes it more prone to the existence of irregular employment, especially with the expansion that occurs sectors are more prone to such practices.

In this sense, the truth is that the provinces with the highest irregular employment, along with Alicante, which is at the top of this classification; ValenciaWith our 105,000 employees who are not included in the Social Security contribution bases; palm treeswith 59,370; Balearic Islandswith 58,710; toledowith 58,450; Cádizwith 52,600; And Santa Cruz of Tenerifewith 52,050. These are borders in all cases, except for the province of Castile-La Mancha, where proximity to Madrid probably has an impact. The great importance of tourism and constructionAgriculture and, in the case of Alicante, the shoe industry are the two sectors where the informal economy has traditionally been detected more.

However, we should not forget that there are many other activities across the country where the prevalence of irregular employment is very high. private lessons, housework or carersTo name a few of them.

But the UA professor points to other possible causes. “It may also be partly a result of the reaction of some business people to corsets. labor reform regarding Mandatory default use of permanent contracts» he states.

The showcase of the shoe industry. Tony Seville

A fear also expressed by the general secretary of the UGT in l’Alacantí and La Marina Yolanda Diazremembering this Abuses committed through employment and service contracts “A temporary contract where the worker signs up and is fired on the same day, or for just two hours.” “Now these contracts they have to justifyThey are much more controlled and it is clear that there are businessmen who do this. “They chose to defraud the law.”he complains. For this reason, Díaz Strengthening the Labor Inspection workforce and providing it with more resources.

A request joined by the head of CC OO Employment at L’Alacantí-les Marines. José María Ruiz Olmos, This also indicates that: atomization of productive fabric as another reason for the high level of informal economy in the region. It therefore reminds us of the difficulties unions face in accessing companies with fewer than six employees. On the other hand, he also states: ” inflation creates more families – which is linked to increases in corporate profits I need a job urgently and the person is not always in a position to deny the abuse.

unfair competition

For its part, CEV thinks: “risky” Ensuring the growth of the unregulated economy because the EPA and Social Security consider their data not comparable. But he admits thatThere are factors affecting the increaseSuch as inflation and rising financial costs for households, financial pressure and labor market rigidity. Of course they emphasize this. “None of these elements” “can justify” Such behavior “in any case leads to unfair competition between companies.”

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