2024-04-26 08:32:10
The ubiquity of temporary contracts as well as low productivity contributed to the dramatic rise in the unemployment rate in the first quarter of the year.
Spain’s unemployment report for the first quarter (Q1) of 2024 was released on Friday morning and shows that unemployment in the country increased from 11.80% in the first quarter of 2023 to 12.29%according to the National Institute of Statistics (INE). It was also higher than analysts’ forecasts of 11.80%.
This higher figure comes as Spain continues to struggle, many of his employment contracts were temporary contractsbecause of the scale of its tourism and hospitality sector, as well asproductivity is chronically low.
Market measures that promote employment stability in Spain
Although it increased compared to the previous quarter, Spain’s unemployment remains very close to historically low levelsdue to a number of labor market measures taken to support employment stability.
Dutch financial institution ING recently said: “ Although the unemployment rate in Spain is historically low, it is still much higher than in other Eurozone countries. Various reforms, especially the 2022 labor reform, have succeeded in reducing the prevalence of temporary contracts, improved employment stability and had a positive impact on unemployment rates. But more reforms will be needed in the coming years.
“We expect the unemployment rate to continue to hover around these low rates in 2024. During the first months of this year, job creation may slow and labor force growth due to strong upward pressure immigration flows put on the unemployment rate.. »
However, ING also noted that economic growth would keep the labor market tight. ” For the entire year 2024, we forecast an average unemployment rate of 11.6%. In 2025. We expect the unemployment rate to slowly decrease to 11.2%. »
Annual report of the retail sales in Spain for March 2024 also on Friday, with a score of 0.6%, down from 1.8% recorded in February. However, it was still the sixteenth consecutive month of growth in the Spanish retail sector. On a monthly basis, Retail sales fell 0.5% in March.
Foreign workers could boost the Spanish job market
Although Spain has one of the highest unemployment rates in Europe, it is still estimated that da very attractive work destination for some foreign workersespecially those from Latin America, for various reasons.
One of the most important of these is a common language, as it greatly helps workers to integrate with the local culture and get better pay opportunities.
The same, the Spanish economy also benefits enormously from these migrant workersbecause they are often highly qualified but cannot find suitable employment in their home country due to global economic and political problems.
Spain’s hospitality and technology sectors were particularly encouraged by this phenomenon, like the economic gains that the United States has recorded in recent years thanks to the increase in skilled immigration.
#unemployment #increasing #Spain