Spanish Employment Suffers Worst Summer in Six Years
Madrid – Spain‘s employment situation deteriorated sharply this summer, closing August with nearly 200,000 fewer workers affiliated with social security and a rise of 21,900 in the number of unemployed, according to data released Tuesday by the Ministry of Inclusion, social Security and Migration. This marks the worst summer performance for Spanish employment in six years, signaling a potential slowdown in the contry’s economic recovery.
The decline in affiliations – representing individuals actively contributing to the social security system – and the increase in unemployment rolls raise concerns about the sustainability of the post-pandemic economic rebound. The figures impact a broad spectrum of the Spanish workforce,particularly those in seasonal industries like tourism,and could foreshadow broader economic challenges as the country heads into the autumn and winter months. Experts suggest the slowdown reflects a combination of factors, including global economic uncertainty and a cooling of domestic demand.
Specifically, the total number of individuals affiliated with social security at the end of August stood at 20,684,418, a decrease of 197,851 compared to the previous month. Simultaneously, the number of registered unemployed individuals rose to 3,144,458, an increase of 21,915.
the Ministry’s data reveals that the majority of the decline in affiliations occurred in the services sector, which is heavily reliant on tourism. While the tourism sector experienced a strong rebound in 2023 and early 2024, recent data suggests a leveling off in demand. The construction sector also saw a notable decrease in employment.
These figures arrive amidst broader economic headwinds facing Spain, including rising inflation and concerns about the impact of the war in Ukraine. The Spanish government has implemented various measures to support employment, including wage subsidies and training programs, but the latest data suggests these efforts have not been sufficient to offset the negative trends.Further analysis of the data is expected in the coming weeks, with economists closely watching for signs of a more sustained slowdown in the labour market.
