The sharp increase in energy prices and the unsettled environment prompted by the conflict in Ukraine are leaving their mark on companies across regions. A clear indicator of this tension is the rapid growth in the submission of Temporary Employment Regulation Files (ERTEs) observed over the recent month. In February, the Alicante Regional Directorate of Labor logged 20 ERTEs; by March, that figure nearly tripled to 49. The regional directorate, which also handles requests from the province, rose from 13 to 32 during the same period. The volume of workers affected followed suit, with services and industry identified as the most impacted sectors.
Data from the Ministry of Sustainable Economy show that 20 ERTEs were filed with the Alicante Regional Directorate of Labor in February, affecting 416 workers. A month later, the trend intensified: 49 ERTEs representing 656 employees. The regional headquarters mirrored this rise, though disaggregated regional figures are not publicly broken out. Taken together, the department reported at least 10,896 workers impacted, rising from 796 workers in February through 13 files to 32 files in March. These numbers highlight a broad heat map of economic strain that goes beyond a single area, affecting multiple municipalities within the Valencian Community.
When these figures are combined with the regional offices for Valencia and Castellón, the total climbs from 69 files affecting 2,042 workers in February to 166 files covering 13,851 workers in February. The most affected sectors were services, which registered 82 ERTEs impacting 1,482 workers, and industry, with 80 ERTEs affecting 12,095 workers. Construction and agriculture trailed far behind, recording two ERTEs each for 264 construction workers and two ERTEs for 10 agricultural workers respectively. The pattern underscores the broad reach of energy-driven cost pressures across traditional employment sectors.
Salvador Navarro, president of the Valencian Community Business Confederation, notes that roughly 4,000 affected individuals stem from the Castellón ceramics sector. This industry stands out as one of the most energy-intensive in the region, a fact that underscores a delicate balance for many enterprises. Navarro remarked that 22 of the 50 proposals submitted to the Generalitat to mitigate the impact were accepted, yet many filters remain. He emphasized the need for decisive actions to curb energy costs and argued that Spain and Portugal should retain authority over their own energy strategies. In his view, ongoing uncertainty only fuels instability and turmoil in financial markets, complicating planning for firms across the country.
In the broader context, stakeholders stress that the energy price backdrop is a critical driver of production costs and competitiveness. The call is for timely, effective policy decisions that can shield firms from volatility while supporting essential industries and the workers they employ. The situation illustrates how energy cost dynamics translate into staffing decisions and the speed at which employment regulation tools can be deployed in response to macroeconomic shifts.
ERTEs proliferate in textiles and threaten the continuity of production lines and business recovery efforts. This trend, as described by regional business leadership, reflects strain on cash flow and the capacity to meet operating costs in a high-energy environment. The textile sector, including the finishing sub-sector, is reported to be among the hardest hit in Alicante, where electricity costs are a primary concern. The association leader warned that without extensions to ICO loan terms and repayment schedules, there could be heightened risk of plant closures, compounding the challenges already faced by manufacturers and their workers. The message from industry stakeholders is clear: sustained financial relief measures are essential to weather a period of elevated energy prices and market uncertainty.
Across these developments, the emphasis remains on maintaining economic resilience and safeguarding employment while markets adjust to a fluctuating energy landscape. The evolving situation calls for ongoing monitoring of ERTE activity, sector-specific impacts, and the effectiveness of policy interventions designed to cushion industries most exposed to energy-driven cost pressures. [Citation: Ministerio de Economía, 2024]