CEPYME values ​​the record that marks employment in July, but draws attention to the risks of slowdown and the historic fall in agriculture

2023-08-02 12:49:47

CEPYME highlights the new all-time high registered by affiliation in the month of July, when the figure reached 20.89 million affiliates, after adding 21,945 more jobs in the month.

The good tourist season and the drive from the private sector have been decisive in reaching this maximum, despite the fact that hiring in the services sector in July was somewhat lower than expected.

However, the Spanish Confederation of Small and Medium Enterprises warns of the moderation in the rate of job creation that has been observed in recent months, in the middle of the summer season, and warns that in the coming months the slowdown in the economy will have a negative impact on the labor market. The weaknesses shown by the industry, together with the drop in household final consumption spending and the effects of the restriction and the tightening of credit, suggest a difficult autumn for business activity and, therefore, for the evolution of employment .

By sectors, CEPYME draws attention to the effort being made by companies in the industrial sector to maintain and create employment, despite the sluggishness in which the activity is entering, which will continue in the coming months, as can be seen in the leading indicators that indicate that the decline in new orders is accelerating and its backlog is weakening. In fact, of the 12,200 people in ERTE who registered in the month of July, 6,100 correspond to the industrial sector.

Regarding agriculture, CEPYME warns of the serious situation that the sector is going through, which is reflected in the data for July, the month in which the agricultural sector registered the lowest level of employment in the last 23 years, going back to the registered affiliation of the year 2000. The Confederation calls for responsibility when evaluating the situation of companies in the primary sector. The drought problem has an impact on the sector, but it is not the only factor that explains the constant loss of membership in the last 24 months. CEPYME points to the high increase in costs that the sector has suffered in recent years, due to the inflationary crisis, but mainly to the sharp increase in the SMI and social security contributions, which it should be remembered have risen by more than 65% in the last few years. last exercises. Some disproportionate increases, which have perverse effects on the maintenance and creation of employment in some sectors such as agriculture.

In conclusion, CEPYME wants to draw attention to the impact that the slowdown in the growth of the Spanish economy will have on the labor market in the coming months and calls for responsibility from political parties to help create a scenario of political stability that benefits economic activity.

Besides, CEPYME appeals to the need for a change of course in the policies undertaken to increase costs that mainly affect SMEs and remember that the reduction in business margins, as this Confederation has shown in recent months, limits its ability to face new economic setbacks and, therefore, to maintain employment in an adverse situation. The Spanish SME has shown great commitment and responsibility when it comes to maintaining employment during the inflationary crisis, but calls for the same responsibility from the political parties and the future Government to comply so as not to further undermine the productivity of small and medium-sized companies Spanish in order, at least, to help it to be able to maintain more than 60% of private employment as it maintains.