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Employment Data Still Doped In Spain

The Government made an effort to present last month as the most positive August for the Spanish labor market. Undoubtedly, you can invoke in your favor the fact that registered unemployment showed a decrease of more than 82,500 people, an atypical behavior for a period in which the holiday season is nearing its end, which reactivates the dismissals and raises the number of unemployed.

On the side of registrations to Social Security, the Executive also assured that there is good news. It is true that the level of affiliates prior to the crisis already recovered before the summer , but it was still necessary for it to also return to pre-Covid levels in seasonally adjusted terms.

And it did so in August by registering 19.47 million workers. However, it is convenient to moderate the triumphalism in this section. Job destruction in the past month was again massive , with 118,000 fewer jobs registered compared to July, breaking the uninterrupted upward trend that began in February. In fact, the disappearance of jobs already extends even to the public sector, with 15,000 fewer employees.

Moreover, the membership data would be notably worse if the more than 272,000 people who continue to be subject to Ertes were not included in them. It is true that they are still contributing, but the fact that they continue in that regime a year and a half after the crisis began reduces any possibility of recovering their old jobs.

There are still more than 272,000 people subject to Ertes with already negligible chances of recovering their jobs

Already in March the Bank of Spain warned that these files lacked effectiveness after so long and will not recover it although, as everything indicates, they will be extended again from October. The employment figures, therefore, still do not reflect the real damages of the crisis in the labor market.