The Spanish Labor Market Slows Down Again in January

Spain begins 2023 with downward employment data. Social Security has confirmed that there has been a loss of 215,047 affiliates. The Ministry of José Luis Escrivá indicates that this effect is due to the end of the Christmas campaign, which usually leaves a trail of people without a contract. The total number of average affiliates thus stands at 20,081,224 (10,638,367 men and 9,442,857 women).

Unemployment data have not been positive either. According to the information reported by the Ministry of Labor, at the end of January, unemployment has increased by 70,744. It follows, therefore, the usual pattern of the first month of the year in which unemployment always increases. The total number of unemployed men and women stands at 2,908,397.

With these data, the slowdown of the labor market in Spain is confirmed since December broke the good streak of 2022 employment with the worst end of the year since 2012.

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Positive data in the Spanish labor market

Despite the fact that January’s data leave doubts, there are figures that show that Spain, for the time being, continues to generate employment. For example, Social Security affiliation added 57,726 affiliates in the last month in seasonally adjusted terms, approaching 20.3 million affiliates (20,298,620). This is the sixth consecutive month in which the number of employed persons has increased.

Although unemployment rose, it was below the average increase of 81,424 people or more than 100,000 in the years prior to the pandemic. With respect to January 2022, registered unemployment has decreased by 214,681 people (-6.87%).

Employment by sector

As for the sectors most affected in unemployment, commerce, and hotels and restaurants were the most affected by the end of the Christmas campaign. Specifically, it lost 39,600 jobs.

For their part, industry, and construction, although they lost employment (7,200 and 3,200 fewer contributions, respectively), played a more important role than they usually do at this time of year.

Madrid and Andalusia are at the top of the unemployment list

By Autonomous Communities, the trend was repeated in all regions, and only in the Balearic Islands did unemployment fall with a drop of 297 people. On the other hand, Andalusia and Madrid lead the increase in unemployment.

The first of them contributes a total of 21,048 people of the total unemployment, while Madrid has added up to 11,140 people. The third autonomous community with the highest unemployment in January was the Valencian Community with 6,776 people.

Permanent employment contracts

With regard to the type of contracts, permanent contracts continue to grow exponentially, following the approval of the labor reform last year promoted by Yolanda Díaz.

The total number of contracts registered during January was 1,200,749 and continues to stabilize. Of this figure, 530,306 employment contracts are of an indefinite nature, representing 44.16% of all contracts, and the trend of stability in hiring continues to be consolidated.

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(Featured image by Peggychoucair via Pixabay)

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First published in EL INDEPENDIENTE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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