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article_detail
Date Published: 02/07/2020
ARCHIVED - Spain unemployment data: Unemployment rises with biggest June increase since 2008
The Covid crisis will undoubtedly cause misery for tens of thousands of people in Spain, businesses forced to close or shed staff and self-employed struggling to meet the monthly costs demanded by the state social security system.
The increased levels of unemployment in March, April and May have already given clear indicators of what is to come and the latest data published for June shows the biggest rise in unemployed during the month of June since 2008 when the economic crisis was just starting to begin.
The figures for June are significantly lower, unemployment increasing by 5,107 (+ 0.1%), but the Ministry of Labour and Social Economy views this as a “slowdown” in the speed at which jobs are being destroyed as during April and March the health crisis resulted in a rise in unemployment of 282,891 and 302,265 respectively.
The June losses bring the total number of unemployed to 3,862,883, the highest on record since May 2016.
June is traditionally a month in which employment is created as businesses take on summer staff.
The increase in unemployment was most significant amongst those who have not worked before, with nearly 15,000 young people joining the lists of the unemployed.
ERTEs
The principal factor which is creating a situation whereby unemployment has not grown as significantly during June as could have been expected given the current Covid crisis is the situation relating to ERTEs, or temporary redundancy notices.
A total of 1.17 million people who were temporarily laid off by the Covid crisis returned to work during June, but this still leaves 1.8 million with either full or partial suspension of their work contract on the ERTE scheme, which has now been extended until the end of September.
Since the crisis began, taking the point of reference as mid-March when the government decreed the state of alarm and lockdown began, there are now 615,000 more unemployed than at that point. In total, 3.8 million Spaniards are registered as jobseekers now, compared to just over 3.2 million at the end of February, EXCLUDING those on ERTEs who are not included in the jobless total.
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