The labor market put the brakes on in the second half of July, as several members of the Government predicted last week after discovering historical figures from the Active Population Survey for the second quarter of the year. The figures published by Labor and Social Security this Tuesday confirm the slowdown: the unemployment rose by 3,230 people, 0.1% compared to June, and 9,104 jobs were created -in seasonally adjusted figures that clean the effects of calendar and seasonal jobs-, a third of what was forecast by the Executive just a few days ago in the valuations of half a month . While in average terms, employment even fell last month by 7,366 affiliates (until the total reached 20.3 million -original series-.
Despite confirming the slowdown in the labor market, which was also warned by the Bank of Spain after the publication of the INE data, the level of unemployed continues to be at its lowest level in 2008, with a total of 2,883,812 unemployed. Similarly, enrollment in Social Security remains at record levels, adding a total of 20,111,141 contributors and fifteen consecutive months of job creation.
In original terms, the average affiliation to Social Security accounts 7,366 affiliates lessclosing the month with 20,340,964 registered (10,880,380 men and 9,480,585 women). In total, the average number of affiliates in original terms exceeds the level of a year ago by 749,236 employed persons.
“After the exceptional behavior in June, employment continues to be created in July, probably pointing to an advance in hiring decisions this summer,” they point out from Social Security as one of the reasons for the slowdown registered in the labor market.
Similarly, the cabinet led by Vice President Yolanda Diaz points out that despite not being the first time that unemployment has risen slightly in the month of July «the increase on this occasion has been significant from the middle of the month, largely due to international uncertainty».
Source: Ministry of Inclusion, Social Security and Migration
However, compared to the same month of 2021, July has registered the largest year-on-year drop in unemployed reduce unemployment by 532,686 people in one year. Thus, they remember from the Administration that in the first seven months of the year there have been 272,039 more affiliates compared to a year ago, discounting seasonality and the calendar effect. In this way, the level of affiliation prior to the pandemic is exceeded by 625,000 people.
More unemployment in education and services
Unemployment picked up in July in the service sector, with a growth of 0.56%, up to 11,237 unemployed. In the case of education, the unemployed increased by 23,708 people, and it is the sector “where this rise has been most pronounced” as a result of the “end of the school year”, they explain from Labor. In addition, they recall that in the specific case of education “the loss of jobs affects contracts prior to the entry into force of the labor reform.”
In the farming825 more unemployed were recorded, 0.56% more than a year ago, while in the building unemployment grew by 976 people, 0.43%. On the contrary, unemployment contracted by 0.81% in the industrywith a decrease of 1,909 people, and in the group ‘no previous employment’which this July recorded 7,899 fewer people (-3.17%).
For its part, Social Security points out that in the month of July it maintained dynamism in sectors such as Information and communication or in professional activities, scientific and technical. In the hospitality sector, the behavior is that of a normal month of July. The moderation in employment growth in July is concentrated in very singular sectors such as Public Administrations, education, construction and agriculturewhich may be linked to factors of a transitory nature or to meteorological factors.
So far this year, the registered increase in affiliation is especially intense in information and communication (6.55%), education (4.34%) and professional, scientific and technical activities (2.97%). For its part, the hotel industry, with an increase of 3.62% compared to the end of 2021, practically recovers the level of affiliation prior to the pandemic.
Hiring trend: indefinite
The total number of contracts recorded during July was 1,665,515, of which 41.44% are of an indefinite nature, thus consolidating “the pattern already observed in previous months,” says the Labor statement. signature of 685,992 permanent contracts in July it multiplies by four the historical average. These contracts are divided into 285,252 full-time contracts, 159,150 part-time contracts and 241,590 permanent discontinuous contracts.
In cumulative terms, full-time indefinite contracts in the first seven months of the year reached a total of 1,608,898, which represents an increase of 909,417 (130.01%) compared to the same period in 2021.
The temporary contracts registered in July 2022 stood at 969,523, which represents a 58.56% of the total. However, temporary contracts concluded in July fell by 42.04% compared to the same month of 2021. In cumulative terms, 7,259,571 temporary contracts were registered in the first seven months, which represents a decrease of 3,044. 815 (-22.23%) over the same period in 2021.
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George is Digismak’s reported cum editor with 13 years of experience in Journalism