Unemployment fell by 536,400 over last 12 months, with improved temporary employment rate

News - 27.4.2017

This is a drop of 11.2%, meaning that unemployment has been falling for three and a half years now. The unemployment rate remains practically unchanged, at 18.75% (up 0.12%) and is 2.25 points lower than it was a year ago. A total of 408,700 were created in the same period, at an annual rate of 2.3%, to now post three straight years of positive results. Practically half of new paid jobs are subject to permanent full-time contracts and the temporary employment rate stands at 25.75%, 0.72% lower than in the previous quarter.

Development of the labour market shows that recovery by the Spanish economy is consolidating at a good pace. It is on the way to its fourth year of improved employment levels and reduced unemployment. Unemployment has fallen by over half a million people annually in recent quarters, with progress in excess of two digits. Jobs are being created at a rate of 2.3%, also approximately half a million in recent years. The number of people in work currently stands at 18.44 million and the number of unemployed at 4.26 million. Since the worst point of the economic crisis, 1.5 million net jobs have been created in Spain, the number of unemployed has fallen by two million and the unemployment rate has fallen by over eight points. In the first quarter of 2017, the percentage of unemployed among the labour force stood at 18.75%, very close to the levels posted in 2009.

The data on the first quarter partly reflect the seasonal nature of the labour market in Spain. Employment fell by 69,800 when compared with the last quarter of 2016, a similar reduction as that posted in the same period of the previous year. Excluding seasonal factors, employment rose by 0.7% quarter-on-quarter, which represents a 0.3% acceleration on the previous quarter. Temporary employment has been reduced (122,600 fewer jobs), while permanent employment has increased (78,000 more jobs). Full-time employment fell (111,100 fewer contracts) and part-time employment increased (41,300 contracts).

The annual result eliminates the seasonality factor and therefore better reflects the state of the labour market. Over the last 12 months, a total of 408,700 were created at a rate of 2.3%; the same rate as that posted in the previous quarter. Job creation in the last 12 months was entirely concentrated in the private sector, with 453,100 more jobs, while 44,400 jobs were shed in the public sector. In the last year, full-time employment increased by 365,200 contracts and part-time employment increased by 43,400 contracts. The number of salaried workers on permanent employment contracts increased by 195,600 and the number on temporary employment contracts by 210,100.

The number of unemployed rose by 17,200 in the first quarter of 2017. This compares with an increase of 11,900 in the first quarter of last year. In this period, unemployment has fallen among the under-25 (down 22,100) and among the over-55 (down 13,900). The number of long-term unemployed fell by 75,800 (those who lost their job over a year ago) and the number of first-time job-seekers fell by 25,200. In annual terms, unemployment has fallen by 536,400, among which the number of long-term unemployed has fallen by 391,100 and the number of first-time job-seekers has fallen by 27,300. In the last 12 months, the number of households where all active members are unemployed has fallen by 216,200 and the number of households where all active members are in employment has risen by 321,600.