Spain’s Unemployment Hits 16-Year Low As Numbers Drop By 24,573
Spain News
Published: 05 December 2023 13:31 CET
In November, Spain witnessed a decline of 24,573 registered unemployed individuals in employment offices compared to October, signalling the most promising unemployment statistic for the eleventh month since 2007. Despite this encouraging development, the rejuvenation of commerce spurred by the Christmas campaign, kick-started by Black Friday, was unable to stave off job losses. The primary cause was attributed to the decline in the hospitality industry, exacerbated by the arrival of colder temperatures.
The Ministry of Labour's recent data release reveals that November concluded with a total of 2,734,831 million unemployed, the lowest figure in the last 16 years at this point. To find a November with fewer than 2.8 million unemployed registered in the SEPE offices, one has to go back to 2007. Over the past twelve months, compared to November 2022, unemployment has decreased by 146,549 people, indicating a significant 5.09 percent drop.
The decline in November's unemployment is less pronounced than in 2022 and 2021, but still noteworthy as the second-highest in the historical series for the month, surpassed only by the drop in 2015. While the services sector experienced the most substantial decline, losing 17,335 unemployed, reductions were also seen in industry (2,654), agriculture (2,175), and construction (1,072).
On the flip side, the trajectory of Social Security affiliation has been less uniform than unemployment, yet it remains at record levels. November maintained an average of over 20.8 million workers, the highest number for the eleventh month in the historical series. In the last twelve months, Social Security gained 522,443 employees, reflecting a year-on-year growth of 2.6 percent.
However, compared to October, Social Security membership decreased by 11,583 people in November, a more significant drop than the previous year. The decline was mitigated by historical standards, given that between 2016 and 2019, the average reduction in the eleventh month of the year was 36,000 people.
The reduction in the workforce was concentrated in specific sectors, with the hospitality industry losing 115,539 jobs due to the end of favourable weather conditions. Although the Public Administration and agricultural sectors also experienced decreases, job creation in education (38,024) and commerce (23,257) partially offset these losses.
The decline in Social Security membership in November primarily impacted women, losing 7,949 jobs compared to a decrease of 3,634 among men. Despite this, the number of women affiliated with Social Security remains at historic highs. Female membership, representing 47.2 percent of the total, has grown by 8.7 percent compared to pre-pandemic levels, outpacing male growth by three points.
November saw a more substantial reduction in unemployment among women, with 15,962 fewer unemployed compared to a decrease of 8,611 among men. The total number of unemployed women reached its lowest point for a November since 2008, with 1,645,093 unemployed women and 1,089,738 men. Additionally, unemployment among those under 25 decreased by 5,588, reaching 205,979, the lowest figure for a November in the historical series.
In terms of hiring, 1,356,293 contracts were signed in November, a 4.8 percent decrease from the same month in 2022. The labour reform's impact is evident, with a notable reduction in temporary employment, particularly among young people. The percentage of affiliates with a temporary contract remained at a historic low of 13 percent in November, down from the 30 percent average before the regulatory change. Temporary employment among those under 30 decreased by 32 points, reaching 21 percent.
Sources: SEPE - 20minutos
