despite unemployment rate It is generally the most used variable to measure the unemployment rate; this indicator This does not reflect how the situation actually affects different people suffer from it depending on their income level, education or personal situation. This way, in some cases, those affected barely register minimal income loss quickly shifting, In others, it is an established problemIt leads to much more complex situations.
Just this way 30 percent of the unemployed carry 90 percent what is known as The social cost of unemployment, Or in other words, they are the ones who suffer the most from the loss of economic and social welfare that comes with being unemployed. This situation is also stated by a research conducted BBVA Foundation And Valencian Institute for Economic Research (Ivie)A study that aims to analyze the phenomenon of unemployment from a new perspective and also reveals that in general terms this social cost of unemployment is lower than the average of the Valencian Community, because those affected usually spend less time in this situation.
The profile of the most affected people coincides with the profile of the unemployed over 45 years oldyes they carry have been unemployed for more than two yearsthey can’t get any help, medium-low education level and they mostly women.
In this sense, the study reminds us that: 41% of more than 2,850,000 unemployed people are long-term unemployed (during more than one year) and 28% have been unemployed for more than two years (representing approximately 700,000 workers). Additionally, two-thirds of the unemployed are not receiving any unemployment benefits, further contributing to the loss of income.
Autonomies
This reinterpretation of the unemployment phenomenon, in which the authors take into account the total loss of income suffered by workers when they lose their jobs, also yields remarkable results. Differences between autonomy Therefore, when we look specifically at the reference 2018 unemployment rates, the regions with the highest unemployment are Extremadura, Castilla y León, Andalusia and the Balearic Islands; On the opposite side will be Navarra, Madrid and Aragon. However, when the social cost of unemployment is taken into account, the classification is quite different: worst affected areas These are, in this order: Andalusia, Asturias and the Basque Country. Moreover, The Balearic Islands are the region with the lowest social costs.
This is because it is a region where the average unemployment duration is considerably lower than other regions. The Basque Country is a region where the average unemployment period is longer than other regions and the wage loss due to lack of employment is greater. These two factors explain the high social cost of unemployment despite having the lowest unemployment rate.
in case Valencian Communitythis cost dropped 18 points of the average in this new indicator created by the authors of the study. Especially because of the autonomy unemployed It takes less time for them to find work again.