July was approaching and bars, hotels, restaurants and adventure companies were looking for summer workers. Media headlines heralded job creation, and economic forecasts were the dynamism of money bouncing between pocket and box. It doesn’t look like that anymore. Unemployment data for last month sent people from enthusiasm to fear of recession. In the last month, labor market The Asturian resisted, but worsened from year to year, bad news for employment. For the first time in the entire historical series, which began in 2001, employment was destroyed when the sun and beach season began in Spain. What appears to be an anomaly has an explanation in these circumstances: hiring has advanced, layoffs of temporary education workers have been avoided, and fears of ever-increasing CPI data are floating in the economic fabric. this smells like a recession to many.
Spain, one of the best data of June statistics, which was strongly celebrated by the Ministries of Labor and Social Security, continued to record the worst data of July. The cooling of the labor market has accelerated in recent weeks and the first effects of ever strength against inflation have been seen. Spain lost 7,365 Social Security members in July, a modest decline had it not been for the fact that the number of previously employed people never dropped. This is very close to the historical maximum reached recently, but remains above the total of 20.3 million active workers, which left the first sign of a change in the cycle and with an autumn job destruction.
A total of 115,528 teachers, dining room watchdogs, overseers, and others set up training centers on the streets this July, intensifying much of the job destruction there. Jobs in agriculture and construction were also lost, though significantly less, and the Government attributes this to the high temperatures in recent weeks.
If employment usually rises in July, unemployment usually falls and it’s neither one nor the other this month. Unemployment rose slightly, at 3,230 people, but rose in July for the first time since 2008. The rise in references has allowed the labor market to leave under three million jobless, particularly as it closed the month with 2.8 million people they sought but couldn’t. find a job. It is the highest rate in the entire European Union, although it has decreased by almost a million people in the last two years. The increase in unemployment was not evenly distributed between men and women, with a 0.1 percent decrease among the former and a 0.3 percent increase among the latter.
More unemployment among wage earners and less self-employed. Social Security lost 10,422 self-employed, the biggest decline since 2009 and the first in five months. RETA members had shown great resilience since the onset of Covid, reinforced by public assistance from the Government, which for the first time came in a generalized form within the group. The month closed with a total of 3.3 million self-employed at the expense of how it developed over the next few months and how it got the new contribution system, which will come into effect from 2023.
This July’s data did not translate into an increase in ERTE-affected workers, despite mentioning the CPI crisis. A group that for months now represents a percentage in the labor market. In July, 21,135 employees were partly or fully in ERTE, about 500 less than a month ago.