Employment continued to grow in October, although at a somewhat more moderate pace, as already occurred in September. Membership increased by 92,862 workers on average, which is the lowest figure since 2015, although the increase was enough to add a new historical record: that of workers affiliated with Social Security, with more than 9.83 million women. For its part, registered unemployment increased by almost 37,000 people, the lowest increase for this month since 2007 and eliminating the decreases of the last two years.
Thus, the total number of people affiliated with Social Security reached just over 20.8 million workers on average last month, the highest for this month in the historical series, while the count of unemployed stood at 2,759. 404 people, at 2008 levels, at the beginning of the financial crisis, (and 2007 if the months of October are taken into account, highlights the Ministry of Labor).
The pace of employment growth slows down slightly, with a year-on-year increase one tenth lower than last month, standing at 2.63%. In number of people, the labor market has added 533,871 people working on average in the last twelve months.
If we look at the evolution of employment in seasonally adjusted terms, the indicator preferred by the Ministry of José Luis Escrivá because it isolates the fluctuations inherent to seasonality, employment increased by about 5,000 people, less than half of the previous month and the figure lowest of the year.
Despite the difficulties at the international and national level such as the slowdown in economic growth, inflation and the interest rate crisis, the Ministry of Social Security highlights that the increase in employment in Spain “is more notable” than other large European economies. “Since the beginning of the war, a period in which Spain has grown by 5.3%, while in France and Germany growth of less than 2% has been recorded,” points out the department of José Luis Escrivá.
It is also worth highlighting the increase in self-employed workers, by almost 5,500 people this month, higher than those registered in previous years. Furthermore, in their case, job creation accelerates, one tenth more compared to September, +0.38% year-on-year, which translates into 12,600 more self-employed workers compared to October 2022. A growth that has been accompanied by an intense conversion of false self-employed workers so far in 2023, of almost 30,000 workers, as reported by Vice President Yolanda Díaz a few days ago and reported by El País.
Maximum number of women working: 9.83 million
Social Security also highlights the increase in employment among women, more intensely than among men, which has allowed a historical maximum number of workers to be reached. Specifically, 9,836,295 members.
In the last year, employment has grown at a rate of 3.2% for women, while for men it has increased at 2.1%.
If we look at unemployment, we find the opposite situation: men emerge from unemployment more (-5.97% in the last year) than women (-4.91%). In total, of the 2,759,404 unemployed people, the majority are women (almost 1.7 million) compared to the nearly 1.1 million men registered for unemployment in public employment offices.
The increase in unemployment in October is common and, in general, larger than that recorded this month of October, as can be seen in the following graph. With the end of summer and high temperatures in many parts of the country, there is a decrease in activity in tourism, hospitality and other labor-intensive sectors.
However, the increase in unemployment this October stood at 36,936 people, the most moderate increase for this month since 2007. In the last two years, contrary to usual, unemployment had even been reduced, as a result of the great pull of the post-pandemic employment. It must be remembered that since 2022 the labor reform has been in force, which has increased discontinuous permanent positions and these do not count in the registered unemployment figures when they become inactive.
In the last 12 months, registered unemployment has decreased by 155,488 people, a rate of decline of -5.33%, which is also moderating, a figure two points lower than last month’s figure (-7.5%).
By sector, the greatest decreases in employment were recorded in the hospitality industry, with 50,300 fewer people affiliated (-3.25%) in the General Regime, where the majority of workers are included. Large falls are also notable in public sector activities, such as ‘Public Administration and Defense, Mandatory Social Security’, with -36,500 workers (-3.1%) and health activities and social services, in which many replacement contracts end. summer, with almost 33,100 fewer workers (-1.8%).
On the other hand, there are activities that increase their activity in October, especially the educational sector, both regulated centers and many other academies. Education alone added 191,154 workers in October, which represents an increase of almost 20%, a figure higher than last year, for example.
The number of workers also increased in artistic, recreational and entertainment activities, with 13,400 more workers (+4.65%) and construction, among others, with 11,500 more workers (+1.2%), in this case a figure somewhat lower than usual this month.
Temporary employment minimum
Social Security also highlights another historical record from last month. “In October, the percentage of members with an indefinite contract stands at 87%, its historical maximum, growing 17 points since the labor reform,” highlights the department of José Luis Escrivá.
With the new legislation, the signing of contracts has been reduced and permanent contracts have greatly increased compared to the vast majority of temporary contracts prior to the reform. In October, “43.6% of the contracts signed in October are indefinite, reinforcing the stability of the labor market,” they highlight in Labor.
The result is a new minimum in the temporary employment rate, employees with temporary contracts out of the total, which stands “at 13%”, celebrates Social Security.