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Work Backlash In A Record June In Spain

Oxygen balloon to the labor market in June in full recovery. The sixth month of the year closed with 233,056 new Social Security affiliates, a record number in the month following May , which also added more than 200,000, and which places the number of contributors above 19.5 million . In addition, the number of unemployed has been reduced by almost 167,000, to 3,614,339 (also the second consecutive month of record), although almost 448,000 people remain under a temporary employment regulation file (Erte).

This month’s milestone has been anticipated by the Government in recent weeks. According to data from the Ministry of Inclusion, Social Security and Migrations published this Friday, this is the largest increase in contributors in all the months of June since at least 2001 and exceeds the largest increase in affiliation to date, with 230,000 contributors in 2005.

But it is that, the June record in job creation is also transferred to the unemployment figure if one looks at the data of the Ministry of Labor and Social Economy, which indicate that the fall in 166,911 unemployed in June (-4.4% ) is the biggest setback in any month since there are records.

The number of Social Security registrations translates into a 1.21% rise compared to the May average, a growth rate that is above other June months prior to the pandemic, since the variation compared to May it had been maintaining below 0.5%, according to the data. In seasonally adjusted terms, the number of affiliates stood at 19,267,915 people in June, which represents an increase of 202,857 over the previous month (1.06% more).

The hospitality industry celebrates the end of restrictions and is the sector that adds the most employed
Shelling by sectors, among those that added more employed people, the hospitality industry stands out particularly , with an increase of 11.6% over May (specifically 126,520 new affiliates) as a result of the end of the restrictions against the coronavirus and the support that the summer season for the sector, which also celebrates the gradual return of national and international tourism.

In the last year, the sector added 60,547 employed persons (+ 5.2%). They are followed, also above the average, by Agriculture, Livestock, Hunting, Forestry and Fishing (3.87%) and Artistic, Recreational and Entertainment Activities, which rose 3.87% and 2.62% respectively.

With respect to the General Scheme, the average monthly affiliation increased by 217,852 workers (1.37%) and exceeded 16.1 million employed persons (16,114,102). The Special Agrarian System subtracted 27,354, and that of the Home, grew by 713. For its part, the Self-Employed Regime reached 3,320,983 average affiliates in June, 13,045 more than in May (+ 0.39%) while the Regime del Mar counted 64,119 employed persons, 2,144 more (3.46%) and that of Coal stood at 1,073 average affiliates, 16 more than in May.

On the map, the average affiliation rose practically all the autonomous communities, especially in the Balearic Islands (14.69%) and, at a great distance, in Castilla-la Mancha (2.17%) and Cantabria (1.71%). Only La Rioja has decreased the number of affiliates to Social Security (-0.11%).

Unemployment is at its lowest figure since the pandemic broke out
Returning to the number of unemployed, this is at its lowest figure since March 2020, when the pandemic broke out after closing, also for the second consecutive month, with a record fall in democracy that exceeded that of May, so far the largest in series with 129,378 fewer unemployed people.

In the last year, unemployment accumulated a decrease of 248,544 unemployed, 6.4% less. From Work they emphasize that the number of unemployed has been reduced by almost 395,000 people in the last four months .

In seasonally adjusted terms, registered unemployment fell by 102,604 people in June, also registering its biggest drop in the series.

By sectors, unemployment decreased in June in all except agriculture , where it rose by 1,882 people (+ 1%) as a consequence of the seasonal characteristics of this activity. The greatest decline in unemployment was led by the services sector, with 131,217 fewer unemployed (-4.9%). They are followed by the group without previous employment (-13,115 unemployed, -3.7%); industry (-12,698, -4.2%), and construction, which reduced 11,763 unemployed (-4%).

Youth unemployment has fallen by more than 18% in relative values ​​in the last four months
Unemployment fell in June for both sexes, although somewhat more for men. While female unemployment fell by 78,861 people compared to May (-3.6%), among men it decreased by 88,050 (-5.6%). Thus, at the end of the sixth month of the year, the number of unemployed women stood at 2,122,610 and that of men, 1,491,729.

By age, unemployment among young people under 25 years of age fell by 7.3% in June, with 23,557 fewer unemployed than in May, while unemployment among people aged 25 and over fell by 143,354 unemployed (-4.1 %). As the President of the Government, Pedro Sánchez, advanced on Thursday, in the last four months youth unemployment has fallen by just over 67,000 people, which represents a reduction of 18.3% in relative values.

In June, 1,798,047 contracts were registered , 55% more than in the same month of 2020, of which 172,866 were permanent, 9.6% of the total contracts.

The number of Ertes is at its lowest figure since March 2020
It should be remembered that the number of unemployed does not include workers under an Erte . In June, the number of temporary employment regulation files fell to its lowest level since they were activated to alleviate the effects of the health crisis on the labor market.

The lifting of restrictions and the advance in vaccination helped 447,800 workers to be registered under this tool at the end of the month, 44,692 less than in May according to the date of registration of the file and 94,322 less depending on the date of request. .

From the Ministry directed by José Luis Escrivá they recall that since May 2020, when 3.6 million workers were in Erte, 90% of those affected have left this system and since the peak of the third wave (February 2021), they have reactivated more than half a million workers.

Of the total of June Ertes, 89,660 belong to the ‘old’ modalities, without exemptions to Social Security , and about 70% (307,262 workers) are included in those that carry exemptions in contributions . Within these new modalities, 198,642 workers are in Erte with special exemptions for ‘ultra-protected’ sectors and their value chain, while 98,292 are in an activity limitation Erte and 10,328 in an activity impediment Erte.

Of the 100 activities registered, two concentrate 43.1% of the people under this tool: food and beverage services (hospitality), with 114,174 workers in Erte, and accommodation services, with 78,789 protected workers.

Finally, in terms of spending on benefits, this reached 2,332 million euros in May (latest data available), of which 555 million went to the Erte , compared to 632 million in March and 3,426 million euros May 2020 (-84%); Between April and 2020 and May, the Erte’s bill for benefits amounts to 18,294 million euros.

Javier Blasco, director of the Adecco Group Institute, has pointed out that although “the data for June are very good and go beyond the most optimistic forecasts […] in July, the favorable seasonality should contribute to a new increase in employment. However, after two very positive months, a moderation could be expected . ” As indicated, “the year-on-year rise in employment would be 4.1%, with 19.55 million employed. If confirmed, it would constitute a new all-time high for affiliation. Unemployment would fall 5.3% year-on-year, with a total of 3.57 million unemployed “.

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