The third quarter of the year left the Spanish economy with an increase in the number of unemployed (92,700 more, up to a total of 2,855,200 unemployed) and a unemployment rate slightly higher than that of the second quarter (11.84% of the active population, compared to the previous 11.6%). But the summer months also left a greater number of employed (209,000 more) which raises the number of employees to the record of 21,265,900 million, according to data from the Active Population Survey (EPA) published this Thursday by the Statistics National Institute (INE).
The explanation of so apparent paradox -the number of unemployed increases, but the number of employed people increases even more- lies in the increase in the active population. In the months of July, August and September, the number of people of working age (between 16 and 64 years) and willing to do so increased by 301,900, to exceed 24.1 million people (24,121,000), an all-time high. In macroeconomic figures, it could be said that of those 301,900 people who joined the labor market, 209,000 found employment and another 92,700 became unemployed.
Accelerated employment growth
After increasing by 209,000 people in the third quarter, employment scores a growth of 720,100 employed people in the last 12 months and accelerates its annual growth up to 3.51%.
By sex, employment increases this quarter by 130,500 men and in 78,600 women. By nationality, employment increases by 62,600 people among Spanish people and in 146,600 among the foreign. In the last twelve months, employment has increased by 720,100 people (272,600 men and 447,500 women).
In the last quarter, the private employment has increased by 192,200 people, reaching 17,731,100. He public employment has grown by 17,000 positions, to 3,534,700.
For its part, the increase in the number of unemployed by 92,700 people (3.36%) raises 2,855,200 the total number of unemployed. In the last 12 months, unemployment has decreased by 125,000 people (–4.20%).
“The good evolution of the labor market continued in the third quarter of the year despite the complex international context, reflecting the strength and dynamism of the Spanish economy that favors families and companies. A new historical maximum of employment and active population is reached, lower the timing and the Youth unemployment registers its lowest rate since 2008“, assessed the Ministry of Economy in a first reaction after the INE data had been published. For the Government, the historical maximum reached by the active population “reveals the citizens’ trust in finding employment.
The two extremes of the unemployment rate
The average unemployment rate of 11.84% in the third quarter is between the extremes of Balearics (5.72%) and Andalusia (18.67%). By sex, the unemployment rate rises to 13.59% for women and 10.26% for the men. And by age, the unemployment rate drops one tenth, to 27.82% for those under 25 years old and it rises one and a half for those over this age, up to 10.5% of its active population
More salaried, less self-employed
The total number of new employees (209,100) is the result of a growth of 266,000 people within the group of salaried employees, while the number of self-employed workers decreased by 60,200 self-employed workers in this quarter, which leaves the increase in this census in the last 12 months.
More indefinite, less temporary in a year
Among the salaried, those who have Indefinite contract increase by 232,100 in the third quarter and those of temporal agreement at 33,900. Within permanent contracts, in the third quarter the number of people with a permanent permanent contract increased by 268,000. In contrast, the number of people with a permanent discontinuous permanent contract fell by 36,000 in the third quarter, to 659,300 employed people (3.6% of total permanent employment). This 659,300 discontinuous permanent contracts represents a lower figure than the second quarter but, in any case, it exceeds that of the third quarter of 2022 by 134,200 (25.5% more).
In annual variation, the number of employees increases by 716,500: permanent employment grows by more than a million people in the last year (1,102,000) and temporary employment decreases by 385,500, so that temporary rate remains at minimum levels of 17.3%, this is seven points less since the entry into force of the labor reform, in March 2022, and also ten points below the recent peak reached in the third quarter of 2018 and half from the record levels of 2006 (34.5%).
The number of employed people with part time contracts has been reduced by 6% in the third quarter, to 2.67 million (12.6% of the total employed, almost one point less than in the previous quarter)
Services, industry and construction go up, agriculture goes down
Occupancy increases this quarter in the services (138,700 more people), in the industry (98,800) and in the construction (19,500), and decreases in agriculture (47,800 less). In the last year, employment grew in services (682,400 more employed), in construction (49,600) and in industry (15,200), and decreased in agriculture (–27,100).
More households with all their members unemployed
Something similar to what happens in general in employment happens in the third quarter with the level of occupancy in households: households grow with all its members unemployedbut the number of families does so to a greater extent with all its members busy. And this is possible because the total number of homes has increased by 60,300 units in the third quarter.
Thus, households that have all their members active unemployed They increase this quarter by 12,800, up to a total of 928,800. Of them, 305,900 are sole proprietors. For its part, the number of households in which all its active members are busy it grows by 20,500 and stands at 11,578,300. Of them, 2,427,600 are sole proprietorships.
Catalonia: 62,4000 employed and 8,600 more unemployed
In Catalonia, the third quarter of the year resulted in 62,4000 more employed people (1.71% more than the second quarter) and an increase of 8,600 people in the unemployed group.
In the last year, Catalonia recorded an increase of 156,500 people in its employed population (4.40% more), reaching 3,716,400 people in the third quarter. According to the EPA, the number of unemployed in Catalonia rises to 345,400 and the unemployment rate stands at 8.50% of the active population (this is 3.34 points below the state average).
Madrid and Andalusia lose jobs in the summer
By community, the largest increases in employment this quarter occur in Valencian Community (80,700 more), Catalonia (62,400) and Balearic Islands (35,200). For its part, the greatest decreases are observed in Madrid’s community (-15,700), Andalusia (–3,800) and Basque Country (–2,800).
In relative terms, the communities with the greatest quarterly increase in employment are Balearic Islands (5.50%), Valencian Community (3.60%) and Catalonia (1.71%).
In the last year, almost all communities increased their occupancy. The largest increases occur in Catalonia (156,500), Valencian Community (130,000) and Madrid’s community (119,300). And the only decrease is recorded in Castile and León (–2,500).
In relative terms, the communities with the greatest annual variations in employment are Valencian Community (5.93%), Canary Islands (5.30%) and Murcia Region (4.74%). Castile and León It is the only one with a negative rate (–0.25%).
Regarding unemployment data, the largest quarterly decreases in the number of unemployed occur in Castilla la Mancha (–11,900), Balearic Islands (–8,400) and Aragon (–5,600). And the largest increases in Madrid’s community (37,600 more unemployed), Andalusia (30,700) and Principality of Asturias and Basque Country (13,400 each).
In annual terms, the greatest reductions in the number of unemployed occur in Valencian Community (–31,700), Canary Islands (–25,000) and Castilla la Mancha (-24,900). On the other hand, the greatest increases in unemployment in the last 12 months are observed in Andalusia (7,000 more unemployed people), Castile and León (6,700) and Estremadura (4,100).
Balearics shows the lowest unemployment rate (5.72% of the active population), while that of Andalusia reaches 18.67%.
Government forecasts
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In the second quarter of the year, the unemployment rate already fell to 11.6% of the active population, to a total of 2.7 million unemployed people, which was the lowest figure since 2008, when the real estate bubble burst. and the banking crisis. In the second quarter, Spain also exceeded 21 million employees for the first time, with more stable contracts, fewer unwanted part-time hours and fewer overtime hours.
For the year as a whole, the Government projects that the average unemployment rate will drop to 11.8% (from 12.9% in 2022) to continue falling to an average of 10.9% in 2024, according to the new macroeconomic table that has been incorporated into the Budget Plan sent to the European Commission on October 15.