Raising the minimum wage by 5.3% will have a negative impact from 85,000 to 135,000 jobs
According to a study by Randstad Research in collaboration with CEPYME, the greatest impact, up to 52% of the total job loss due to the increase, would go to the hospitality and retail sectors, the most affected by the crisis.
BY RRHH Digital, 12:01 am – December 29, 2020
The Spanish Confederation of Small and Medium-Sized Enterprises (Cepyme) has estimated that raising the inter-professional minimum wage (SMI) to 1,000 euros (+ 5.3%) from January 1 will have a negative impact on estimated employment for 2021 and 2022 between 85,000 and 135,000 jobs, a figure that includes both jobs destroyed and those not created as a result of the increase, according to a study by Randstad Research in collaboration with employers.
Likewise, the study shows that more than half of the job losses (52%) could be concentrated in the hospitality and commerce sectors, which have been the most affected by the pandemic.
The employers’ association pointed out that an increase in this amount will have a “very damaging” effect on these sectors which, following the crisis, have destroyed several hundred thousand jobs and “have tens of thousands. others at risk (both due to the regulation of temporary work (ERTE) still in force as outside them), with a particular incidence in SMEs ”.
Young and less qualified
He also believes that the consequences of this increase will mainly affect the youngest and least qualified workers.
“This rise in the SMI comes at a very difficult time for the Spanish economy and in an extremely critical situation for many companies, especially SMEs,” observes Cepyme, who estimates that 2020 could end with a loss of more than one million jobs, between the decline in the workforce and the jobs still in ERTE.
Over the past year, affiliates have fallen by 355,000, or 1.83% of total employment, from 19.37 million affiliates as of November 30, 2019 to 19.02 million as of November 30 of this year.
In addition, a total of 747,000 people were still affected by ERTE as of November 30, 148,000 more than the previous month. Also in November, there were a total of 7.36 million job seekers, of whom 3.85 million were unemployed.
Cepyme pointed out that increasing the SMI is the exclusive responsibility of the government, after consultation with social workers, and that factors such as the evolution of the CPI, “which is negative this year, must be taken into account. “; the national average productivity and the economic and employment situation.