This is how Randstad values EPA data: “Good quarter for employment, with a sharp rise in activity and a drop in unemployment to 15.26%”
The Labor Force Survey (LFS) for the second quarter of 2021, in line with what can be expected from a second quarter of the said survey, was characterized by a significant increase in employment, both due to seasonal factors, but also due to seasonal factors. The positive figures can also be explained by the good development of the economy during the said quarter, as the incidence of covid-19 decreased and restrictions were lifted in all regions and sectors. Unemployment, for its part, has seen a quarterly decline, which it joins that measured also during the two preceding quarters, even if it is a decrease much less than the increase in the number of employed people. Employment increased by 464,900 people in the second quarter, the second best second quarter in the series (the best was 2018). The number of employed people amounted to 19.67 million people, but it should be remembered that this figure includes workers who are still affected by the ERTE and who, therefore, are not able to work. Unemployment fell by 110,100 people in the quarter, to 3.54 million, while the labor force increased by 354,800 people. The unemployment rate fell by seven tenths to 15.26%.
The positive behavior of employment in the second quarter due to seasonal factors – this is the quarter when tourism activity rebounded and the sectors which seasonally employ hundreds of thousands of workers were reactivated – with the positive development between April and June of the pandemic, which allowed the lifting of restrictions in most sectors and in all regions. As a result, the number of employed people stood at 19.67 million, after measuring a quarterly increase of 464,900 employed, while year-on-year – compared to the worst quarter of the crisis – an increase of 1.06 million employees.
Regarding the development of activity, the increase of 354,800 workers explains why unemployment fell by only 110,000 people while employment increased by 465,000 people. The activity rate increased by nine tenths in the second quarter and stands at 58.58%. On a year-over-year basis, the labor force increased by 5.64%.
Quarterly employment growth was more intense among employees, especially temporary workers. The public sector returns to an employment record
The increase in employment in the second quarter was found both among salaried workers (+403,200 employees, + 2.50%) and among the self-employed (+71,800, + 2.33%). Among the self-employed, both the number of employers (+20,200, + 2.22%) and the number of self-employed without dependent workers increased on a quarterly basis. In terms of year on year, both are also growing.
Among employees, the second quarter of the year was characterized by an increase in both fixed-term contracts (+305,000, + 7.96%) and permanent contracts (+98,100, + 0.8%). On a year-over-year basis, both groups of employees are growing, but the increase is much more intense for holders of a temporary contract (+666,500, + 19.20%) than for holders of a permanent contract ( +314,100, + 2.60%). The interim rate rose to 25.1% in the second quarter, which indicates that 3 out of 4 employees in Spain have a permanent contract.
The increase in employment in the second quarter occurred both in the private sector (+ 2.67%) and in the public sector, where it again increased (+ 42,100, +1.24% ) and set a new all-time high, with 3.44 million people employed in the public sector. Employees in the private sector stand at 16.23 million.
Employment increased in the second quarter in all age groups without exception, with a particular impact in the 20-29 (+152,500) and 40-49 (+115,500) segment. In percentage terms, employment growth among the youngest stands out: + 45.30% among 16-19 year olds in employment.
By sectors, in the second quarter, employment increased in all sectors without exception: Agriculture (+13,100), Industry (+23,000), Construction (+63,100) and Services (+365,700). In year-to-year terms, employment reproduces the same behavior, with increases in Agriculture (+ 6.24%), Industry (+ 0.87%), Construction (+ 13.33%) and Services (+ 5.97%), for a total of an average increase of 5.72%.
The increase in employment in the second quarter occurred in the 17 Autonomous Communities and in Ceuta and Melilla. The strongest increases in employment were measured in Andalusia (+102,400), the Balearic Islands (+60,300) and the Valencian Community (+55,100). On a year-over-year basis, employment increased in all Autonomous Communities and Melilla, with the largest increases being measured in Andalusia, Catalonia and Madrid.
Unemployment rate drops to 15.26%, with a difference of 4 points between men and women
Unemployment measured by the LFS fell by 110,100 people in the second quarter of the year and the unemployment rate fell to 15.26%, with an incidence four points higher among women (17, 36%) than in men (13.39%). On a year-over-year basis, the unemployment rate remains virtually stable, although it reflects an annual decline of 7 tenths for men and an increase of 6 tenths for women. The quarterly decline in unemployment was concentrated in the 25 to 54 segment, since for the rest of the ages, unemployment increased in the second quarter.
Randstad Research Analysis: The labor force returns to pre-crisis figures after five quarters of under-representation.
One of the most striking phenomena of the EPA since the beginning of the crisis has been the measurement of the active population, since due to accounting restrictions the INE has been forced to count as inactive people who have lost their jobs. during the first months of the crisis, when the economic logic of the phenomenon aimed to classify them among the unemployed. Suffice it to mention that only 55,000 people out of the total 1.07 million who lost their jobs in the second quarter of 2020 were listed as unemployed, while the labor force was reduced, during that quarter, by 1 , 02 million people.
In the progressive districts, the INE reoriented the situation, because it was possible to classify among the unemployed people considered as inactive. And, logically, the working population was increasing, with abnormal increases compared to what would be usual in their corresponding neighborhoods.
The normalization process would be practically completed in this second quarter of 2021, one year after the aforementioned great effect. In this quarter, headcount increased by 354,800, the largest increase in staffing in the second quarter of any historical series. The number of working people has again exceeded 23 million people (23.22 million) and is at values very close to what it had just before the start of the crisis: in the last quarter of 2019, it was 23.16 million.