Spain sees record employment rates despite rising unemployment

Spain ended the third quarter of this year with a new record employment rate of 21.3 million people despite rising overall unemployment, with youth figures remaining well above an acceptable ceiling by standards of the EU, according to a report from the National Institute of Statistics (INE).

According to the report, the Spanish labor market created 209,100 jobs in the third quarter of this year, mainly thanks to services, and recorded a record number of 21.26 million workers, reveals the labor force survey published by the ‘INE.

However, at the same time, the overall unemployment rate increased by 92,700 people to a total of 2.85 million, bringing the unemployment rate in Spain to 11.84%.

Unemployment among those under 25 decreased very slightly by 0.12 points in the third quarter of the year, to 27.82%: its lowest level in 15 years, compared to 2008.

However, the total number of young unemployed increased to 518,100 people, 50,500 more than in the previous quarter, a negative trend recorded mainly in the 20-24 age group and among men, according to the study. ‘INE.

Low wages, job insecurity and high unemployment among young Spaniards are one of the main obstacles to their emancipation and make access to property difficult, among other things.

Many young singles or couples don’t have easy access to mortgages and are spending well over 30% of their salary on rent, which is well above the recommended safe debt limit, according to many experts.

The total number of unemployed among 20-24 year olds rose to 376,100 people, 30,600 more than in the previous quarter, while among 16-19 year olds unemployment increased by 19,900 people, reaching a total of 142,000, according to the report. .

The labor force, which includes workers and people looking for work, increased in the third quarter by 301,900 people, to 24.12 million, and also hit a new all-time high, the report said.

Wage increases, additional anti-inflationary measures

Spain’s two main unions, CC.OO and UGT, have called for more wage increases to mitigate the effect of soaring inflation and its impact on the price of food, fuel and other basic products.

Last May, the UGT, CC.OO and the main Spanish employers’ association (CEOE) reached an agreement on a wage increase of 4% in 2023, 3% in 2024 and a further 3% in 2025.

Pepe Ivarez, general secretary of the UGT, demanded this week that the minimum wage (SMI) in Spain, currently 1,080 euros, reach 1,200 euros (in 14 installments), and that the maximum working week be limited to 35 hours, which would improve productivity. .

The SMI would have to be 1,200 to be equivalent to 60% of the average salary in Spain, defended Ivarez, quoted by the Spanish media.

According to the UGT, the evolution of fuel prices has made filling up with gasoline a rare luxury, beyond the reach of many Spanish national economies.

INE data from last September revealed that the Consumer Price Index (CPI) in Spain was 3.5%, nine tenths of a percentage point higher than that recorded in August, while the annual inflation rate was 5.8% in September.

Shortly after the publication of the INE report, CC.OO urged on Thursday to avoid any triumphalist analysis. An unemployment rate of 11.84% is far from the EU average (5.9% in August), the union stressed.

We must not only settle for a reduction in the unemployment rate, but we must also achieve full employment, said the union secretary for Employment, Mari Cruz Vicente, EFE reported.

(Fernando Heller | EuroEFE.Euractiv.es)

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