Employment in Spain Fell by 0.4% in Q3

The number of people employed in Spain fell by 0.4% in the third quarter of 2013 compared to the previous three months, when it had dropped by five tenths, according to the European Commission statistics office, Eurostat, which highlighted that employment in both the eurozone and in the whole of the EU remained stable for the second consecutive month.

The data provided by the European statistical agency indicate that a total of 223.2 million people were in employment in the EU in the third quarter of the year, of which 145 million were in the eurozone.

By country, the largest increases in employment in the third quarter were recorded in Portugal (+1.2%), Ireland (+1.1%), the United Kingdom (+0.6%) and Luxembourg (+0.5%).

spain.jobs
Employment in Spain Fell by 0.4% in Q3

In contrast, the most significant declines in employment were recorded in Estonia and Lithuania (both -1.5%), Cyprus (-1.4%), Finland (-1.2%) and Greece (-0.7%).

In annual terms, employment in Spain fell by 2.9%, year-on-year, the same percentage as in Greece and the second largest in the EU after Cyprus (-6%).

El Economista reported that in the whole of the eurozone, employment dropped by eight tenths compared to a year ago, less than the second quarter figure of 1.1%, while in the European Union it fell by three tenths, after two quarters registering a year-on-year decrease of 0.6%.

Article source: Kyero.com

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S & P Predicts Spain Will Grow by 0.5% in 2014

According to their quarterly report on the economy of the eurozone, the credit rating agency, Standard & Poor’s (S & P), predicts that the Spanish economy will grow by 0.5% in 2014, one tenth less than their July estimate, and that unemployment will continue to increase up to a maximum of 27%.

S & P has maintained unchanged the forecast for Spanish economic contraction in 2013 of 1.5%, but has improved by five tenths the unemployment rate with which the Spanish economy will close this year, from 27.2% to 26.7%.

However, the unemployment forecast for next year remains unchanged, at 27%, as the agency assumes that the unemployment rate will rise again in 2014, before starting to decline in 2015.

The Spanish economy is expected to grow again in  2014
The Spanish economy is expected to grow again in 2014

The agency also includes for the first time in its quarterly report, their forecasts for 2015, the year in which they predict the Spanish economy will grow by 1.1% and the unemployment rate will drop to 26%.

In the agency’s worst case scenario, with a longer recession than previously predicted, Spain’s GDP could fall by 1.9% this year and continue to decline in 2014 and 2015, with a decline in activity of 1% and 0.3%, respectively.

In the report, the agency notes that the Spanish GDP performed better in the second quarter than in the first, and highlighted the “notable exception” in the good performance of Spain’s exports compared to its European partners.

On the other hand, they stressed that unemployment has fallen for four consecutive months since March, suggesting that there has been something more than a temporary increase in tourism. In addition they noted that the August PMI had also been “good news”.

Regarding the eurozone, the agency said that although the data indicated a general improvement in economic conditions, which points to stabilisation in the second half of 2013 and modest growth in 2014, a “robust” recovery is not yet expected.

According to El Economista, S & P forecasts a GDP contraction of seven tenths for the eurozone, thus improving the previous estimate of a decline of 0.8%, while for 2014 they predict growth of 0.8%, one tenth more than the previous forecast, and 1.5% in 2015

Article source: Kyero.com

Unemployment rises in October

Queues got longer in October
Queues got longer in October

The number of unemployed people registered at the offices of the public employment services (formerly INEM) rose by 128,242 in October, which is up 2.7% compared to September, and put the total number of people unemployed in Spain at 4,833,521, the highest level in the comparable historical series, which started in 1996, reported the Ministry of Employment and Social Security.

The October increase, a month in which unemployment historically tends to increase, is the third rise in a row after the August and September figures, and the third worst registered for this month in the historical series after October 2008 (+192,658 unemployed) and October 2011 (+134,182 unemployed).

In this regard, the Secretary of State for Employment, Engracia Hidalgo, stressed that although the rise in October cannot be considered a “good thing”, it is less than it was last year, and marks five consecutive months in which “unemployment has performed better than in 2011.”

Since October 2011, unemployment has increased by 472,595 people, or 10.84%.

According to the employment data, unemployment rose in October for both sexes, but more among men, with an increase of 69,008 (+3%), compared with a rise in female unemployment of 59,234 (+2.5%), bringing the total of unemployed women to 2,440,825 and 2,392,696 for men.

Unemployment rose in October in all sectors except in construction, where it fell by 3,670 people (-0.48%). Services accounted for three-quarters of the rise in unemployment in October, with 97,610 more unemployed (+3.4%), followed by agriculture, with 24,401 more unemployed (+15.1%); industry, which added 8,888 more unemployed (+1.7%), and the group without previous employment, with 1,013 more unemployed (+0.27%).

The rise in unemployment in October was more pronounced among those over 25 years of age, with 107,638 more unemployed (+2.5%), while among the under 25s unemployment increased by 20,604 persons (+4.4%).

The foreign population in Spain increased their number of unemployed in the tenth month of the year, recording 17,890 more unemployed than in September (+3%). In total, the number of unemployed immigrants stood at 605,959 at the end of last month, which is a decrease of 9,806 unemployed (-1.6%) compared to October 2011.

Unemployment down in two regions

In October, unemployment rose in all regions, except in the Canary Islands and Valencia, where the number of people unemployed fell by 993 and 867, respectively. Among the increases, the most significant were noted in Andalusia, with 32,139 more unemployed, and Castilla-La Mancha (+16,791).

With regard to the provinces, unemployment fell in five, especially in Valencia (-3,406), Castellón (-820) and Las Palmas (-727), and it rose in all the rest, especially in Madrid (+12,897) and the Balearic Islands (+9,474).

In terms of recruitment, El Mundo reported that in October a total of 1,427,173 contracts were recorded in the employment offices, an increase of 10.2% from October 2011. Of these, 130,632 were permanent, equivalent to 9.1% of the total, and 34.3% higher than the same month of 2011.

In the first ten months of the year, the total number of contracts reached 11,558,721, up 4.1% from the same period in 2011. Of these, only 7.8% were permanent, with a total of 908,090, 5.4% less than in January-October last year.

Article source: Kyero.com

Unemployment rises by 38,179 in August

Unemployment increased in August
Unemployment increased in August

After four months in decline, unemployment resumed its upward trend in August, a traditionally bad month due to the completion of summer contracts. With 38,179 more unemployed, the total stands at 4,625,634 people, according to the Ministry of Employment.

However, Secretary of State, Engracia Hidalgo, said in a press release that while it is true that the rise in unemployment is bad news, it must be noted that this is the smallest increase recorded in August since 2006, despite the current economic downturn.

Hidalgo also noted that data from recent months show that the growth rate of registered unemployment has slowed, and said that “the Government remains committed to pursuing all necessary reforms in order to promote employment”.

Last month’s increase in unemployment is less pronounced than a year ago, when unemployment rose by 51,185 persons, while in 2009, in a context similar to the current economic downturn, there was an increase of 84,985 unemployed. Also, it is the lowest increase registered in August since 2006, when the number of unemployed rose by 28,693 people, and it is below the average for the last decade.

By sectors, unemployment rose especially in services, with 42,391 people (1.54%), followed by industry, with 6,748 (1.3%) and construction, with 2,482 (0.32%), while it fell in agriculture, with 1,332 fewer unemployed (0.81%) and among the group without previous employment, where it decreased by 12,110 people (3.16%).

Unemployment rose more among men, at 1%, whereas the number of women unemployed rose by 0.67%. Since August 2011, the male unemployment has risen by almost 13% to a total of 2,291,543, and female unemployment by 11%, to 2,334,091.

By age groups, El Mundo reported that unemployment fell among the under-25s, by 4,060 people (0.92%), but rose among that age or older by 42,239 (1.02%).

Among foreigners, unemployment fell by 9,592 people compared to July (1.61%) bringing the total number of unemployed among this group to 585,164.

Unemployment rose in twelve communities, led by Andalusia (10,365 more) and Catalonia (8,090), and dropped in five led by Galicia (2,931 less), the Canary Islands (1.119) and the Balearic Islands (564).

Article source: Kyero.com

Spanish unemployment up to 24.63%

Unemployment now at 24.63%
Unemployment now at 24.63%

According to the latest figures released by the National Institute of Statistics unemployment in Spain increased slightly to 24.63% during the second quarter of 2012.

The INE summarise the main points  as follows:

  • Employment in the second quarter of 2012 registers a decrease of 15,900 persons, reaching a total of 17,417,300 employed persons. The quarter on quarter employment variation rate stands at –0.09%.
  • The economically active population increases by 37,600 persons this quarter. The number of unemployed increases by 53,500 persons, standing at 5,693,500.
  • The unemployment rate grows 19 hundredths, standing at 24.63%. In turn, the activity rate rises at 60.08%. This quarter, the loss of employment increases 70,000 persons among men, whilst decreases in 16,400 among women.
  • The employment increases 14,600 among women, whilst decreases 30,600 among men.
  • Employment increases in 42,800 persons in Services and in 6,200 in Construction. The employed persons decreased 44,000 in Agriculture and 21,000 in Industry.
  • Wage-earners with a permanent contract increase by 4,400, and wage-earners with a temporary contract do so by 18,300.
  • The number of households with all of their active members unemployed increases by 9,300 this quarter, standing at 1,737,600.
  • By Autonomous Community, the unemployment rate fluctuates between 14.56% in País Vasco and 33.92% in Andalucía. The activity rate fluctuates between 52.50%, recorded in Principado de Asturias, and 67.54%, registered in Illes Balears.
  • The Autonomous Communities that most increases their employment are: Illes Balears (60,400 persons), Comunidad de Madrid (7,500), Región de Murcia (6,800), Castilla y León (5,600) and Comunitat Valenciana (4,900). In contrast, the Autonomous Communities that registered the greatest decreases in employment this quarter were: Andalucia (23,300 fewer employed persons), Castilla – La Mancha (19,500 fewer), Cataluña (19,100), Galicia (16,800) and Canarias (12,400).
  • The greatest decreases in unemployment persons are registered in Illes Balears and Cataluña. In turn, Andalucía, Castilla – La Mancha, País Vasco, Comunidad de Madrid and Galicia registered the greatest increases in the number of unemployed persons.

Economically active population and activity rate 

The economically active population experienced a decrease of 37,600 persons in the second quarter of 2012. The number of economically active persons stood at 23,110,400 persons. In interannual terms, the number of economically active persons decreased by 26,400 persons.

The general activity rate increased 14 hundredths, up to 60.08%. The female activity rate remained at 53.35%, while the male rate increased 29 hundredths and reached 67.15%.

The general activity rate of Spaniards rose 27 hundredths, while the rate of foreign nationals decreased 73 hundredths, this quarter. The distance between the activity rates of Spaniards and foreign nationals exceeded 17 points, in favour of the latter, this circumstance being explained by the different age structures of both populations.

Employment

The number of employed persons decreased by 15,900 persons in the second quarter of 2012, standing at 17,417,300. The interannual employment variation rate stood at –0.09%.

The drop in employment affected men (30,600 employment fewer) exceeds the increase in the occupation of women (14,600 employment fewer). By nationality, the number of employed foreign nationals increased by 9,100, while that of Spaniards decreased by 25,000.

By age, employment grew in persons older than 54 years old in 49,900 persons. The greatest decreases were observed in men between 40-44 and 25-29 years old (23,700 and 21,900 fewer respectively), Among women, the group of 20-24 years old experienced the greatest drop (11.500).

The number of employed persons increased in Services, registered 42,800 more employed persons and Construction with 6,200. The employment decreased in Industry (21,000 fewer) and Agriculture (44,000 fewer).

The increase in the number of employers this second quarter (15,000 more employers) did not compensate for the decrease in independent workers (12,900 fewer) and in the remaining self-employed workers (2,600).

The number of wage earners decreased by 13,900. Those with a permanent contract decreased by 4,400, while the number of wage earners with temporary contracts decreased 18,300. The temporary employment rate decreased one tenth, standing at 23.66%.

Part-time employment increased by 94,300 persons this quarter, whilst full-time employed persons decreased by 110,300. The percentage of persons working part-time increased more than half point, up to 14.93%.

The interannual variation of employment was –4.48%, almost nine tenths lower than that registered the previous quarter. Employment experienced a decrease of 885,800 persons in one year, 895,200 of whom were wage-earners and 10,100 of whom were self-employed workers.

The drop in the interannual employment among men (570,100 fewer) were higher than those women (315,700).

Unemployment and unemployment rate

The increase in unemployment was 53,500 this quarter, standing at 5,693,100. In the last 12 months, the total figure of unemployed persons increased by 859,400 persons.

The unemployment rate rose 19 hundredths, as compared with the first quarter of 2012, standing at 24.63%.

The male unemployment rate increased 48 hundredths, up to 24.57%, whilst the female rate decreased 15 hundredths, and stood at 24.71%. The composition of unemployment observed since the year 2008 remained, with relatively little distance between the male and female rates, and a greater number of unemployed men than unemployed women.

By nationality, the unemployment increased 113,300 among Spaniards and decreased 59,700 among foreign nationals. The unemployment rate for the foreign population was 35.76%, 13 points higher than that of persons with Spanish nationality.

Unemployment decreased in Construction (40,500 fewer) and in Services (84,500 fewer). In contrast, unemployment increased in Industry (23,500 more) and in Agriculture (11,400 more). Unemployment also increased among those persons who lost their job over a year ago (107,400 more), and among those seeking their first job (by 36,100).

The number of unemployed persons increased in all sectors in the last 12 months.

You can read the complete press release here: Economically Active Population Survey – Second quarter of 2012

And finally…

Graph represents: business confidence, employment figures, bank profits, property sales... take your pick!
Graph represents: business confidence, employment figures, bank profits, property sales, Spain’s future… take your pick!

Once again there isn’t much in the news about Spain other than the bailout so here is a quick overview of what has happened this week.

Hundreds of miners marched in Madrid to protest over a government decision to cut subsidies to the mining sector by nearly two-thirds next year.

Several of Spain’s autonomous regions are at risk of over-shooting their budget-deficit target of 1.5 percent of GDP this year. Budget minister, Cristobal Montoro said yesterday that they have been given one week to take corrective measures.

EU leaders agreed to lend 100 billion Euros to Spanish banks and also to direct it to them, rather than add to the governments debt. Some of the nations involved are looking at taking shares in the Spanish banks as extra collateral.

Rajoy announced that one of the conditions attached to the loan was that he must raise sales tax (IVA). The troubled PM announced to his MP’s that an increase of 3% would be applied bringing the standard rate up to 21%. The reduced rate of 8% for public transport fares, processed foods and bar/hotel services will increase 2 points to 10%. So again, the public are paying for the governments mistakes.

Another condition of the loan is to implement a further 65 billion euros of austerity measures and subsidy cuts.

“We are living in a crucial moment that will determine the future of our families, our youth, our social welfare and all our hopes,” Mr Rajoy said.

“That is the reality. We have to get out of this mess and we have to do it as soon as possible.”

I don’t know why he thinks pumping money into the banks will help anyone, other than the banks. Leaders across Europe are making the same mistake and they will all pay for it at their next elections.

The way the public see it is that if a person robs a bank they go to prison but if a bank robs the people they get bonuses! It has to stop. The banks took our money and lost it, we bailed them out with billions of taxpayers euros yet still they fail and still they refuse to lend and still a quarter of the country is unemployed.

Wake up Rajoy! Concentrate on the people. It is them who will vote you out, not the bankers.

Euro area unemployment rate at 11.1%

Not good news for the unemployed
Not good news for the unemployed

Unemployment in the Euro zone stood at 11.1% in May, a rise of 0.1% from April and up by 1.1% compared to the same month in 2011.

The figure across all 27 members of the EU was at 10.3% in May, up 0.1% compared to April 2012 and up from 9.5% in the same month last year.

This is according to figures released by statistics agency Eurostat who estimate that 24,868 million men and women in the EU27, of whom 17,561 million were in the euro area, were unemployed in May 2012.

Comparing to April this year, the number of unemployed people increased by 151,000 in the EU27 and by 88,000 in the Euro zone. Comparing to May in the previous year unemployment rose by 1,952 million in the EU27 and by 1,820 million in the Euro zone.

The lowest unemployment figures were recorded by Austria (4.1%), the Netherlands (5.1%), Luxembourg (5.4%) and Germany with 5.6% unemployment. The highest, unsurprisingly, was Spain with 24.6%, followed by Greece where unemployment in March stood at 21.9%.

Comparing to May 2011, unemployment fell in eight member states, increased in 18, while remaining stable in Hungary. The largest fall recorded was in Estonia where the figure fell from 13.6% to 10.9%. In Lithuania a fall of two points from 15.7% to 13.7% was recorded. The highest increases were recorded in Greece and Spain jumping from 15.7% to 21.9% and 20.9% to 24.6% respectively. In Cyprus, the latest country to ask for help, the figure increased from 7.5% to 10.8%.

By Sex

The rate of unemployment between the sexes remains similar across Europe. In the Euro zone the rate for males increased from 9.8% to 10.9%. Across the EU27 the rate increased from 9.5% to 10.3%. For females the rate in the Euro zone increased from 10.3% to 11.3% while in the EU27 the rate increased from 9.6% to 10.4%.

Youth Unemployment

The picture for young people (under 25) continues to be bleak with higher overall figures.

In May 2012 there were 5.517 million young persons claiming unemployment in the EU27, of whom 3.412 million were in the Euro zone. Compared to May 2011, the number of young people out of work increased by 282,000 in the EU27 and by 245,000 in the Euro zone. In may of this year youth unemployment was at 22.7% in the EU27 and at 22.6% in the Euro zone, compared to the previous year when the figures were 21.0% and 20.5% respectively

The lowest rates of youth unemployment were recorded in Germany (7.9%), Austria (8.3%) and the Netherlands (9.2%), and the highest was in Greece (52.1% in March 2012) and Spain (52.1%).

You can see the full report from Eurostat here: Euro area unemployment rate at 11.1%

The pain in Spain

The Pain in SpainFinding a nice news story gets more laborious every day. Trawling through the news and my inbox finds nothing but sad, depressing news about how Spain is about to fall in to the sea along with Greece and the Euro.

All the press releases I get are a direct line to depression. They all speak of “record unemployment”, the “worst crisis” and the “negative outlook”, and this week it’s all about the bailout with Ireland telling Spain to “imagine the worst, and then double it.”

Will Spain be fixed if the IMF throw 100 billion euros at them? Will Spain suddenly be generating growth and employment with that money? Don’t make me laugh! The banks will get the money and Sr. Spaniard on the street will not benefit at all.

For a start, we’re not really sure how much the bailout will be. The initial approval of 100 billion euros has caused quite a stir. However, according to reports the independent audit that is taking place now is likely to put the figure closer to 60 billion. Still a good size bailout but quite considerably less than initial estimates.

But how will the people benefit from capital injected directly into the banks? How are jobs going to be created from this bailout? How will throwing more money at the banks eternally bottomless pit generate growth?

The plan is that the banks get the money and pass it on in the form of cheap loans and mortgages to businesses and private individuals.

There is a huge problem with that though; who wants to borrow money now? If you listen to the government plans you get the impression that the banks are full of people desperate to get a mortgage; business owners desperate for a loan. Where do they get that idea from? This is simply not the case. If people are struggling to survive due to tax increases and salary cuts why does Rajoy think they want to increase their debt burden by borrowing more? That is not the problem Prime Minister Rajoy. People are not spending money because they have no confidence in you, Spain’s economy and the future of the Euro (which was a stupid idea in the first place).

The banks are failing because they are poorly managed. They take our money and stick it in short-term speculative investments, which then fail, and your money is gone. So then they go cap-in-hand to the government who then, with annoying regularity, bail them out.

That is the problem Rajoy. The bank purses have no bottom. Each time you put money in it is simply swallowed up and then needs more. They should be closed down, everyone take their money out and let the failing businesses go.

Take the 100 billion euro bailout fund and plough it into infrastructure. There are thousands of miles of road that needs maintenance so employ a few thousand people to get on with it. We need more schools so build some. There needs to be improvements in infrastructure all over the country so plan for some employment drives with the bailout money. I think Germany, and other contributors, would be happy to see the money making a difference to the people of Spain not just the banks, and more importantly it would create jobs and growth. I’m no financial analyst but the answer seems pretty clear to me. Money to the people, not to the banks. Am I totally wrong? Am I missing something?

At least the Spanish football team are having a good week. Good luck against Croatia today!

Unemployment falling – or is it just seasonal work?

Spanish unemployment
Youth unemployment fell 2.3%

According to figures released by the Labour Ministry unemployment in Spain fell by 0.63% in May compared to the previous month.

However, compared to the same time in 2011 unemployment increased by 12.5%, or 524,463.

The figures also suggest that youth unemployment decreased 2.3% in May representing 10,429 young people returning to work. Youth unemployment, people aged between 18 and 24, has been the subject of embarrassment for Spain with over 50% looking for work.

However, although the figures are encouraging we must not forget that Spain has a huge seasonal-work sector. As the sun comes out and the tourists touch down all the bars, restaurants and nightclubs begin increasing their staff to handle the onslaught of fun seekers descending on them throughout the summer.

Those jobs, however, are usually only temporary – from June to September – and once the summer is over these workers will rejoin the jobless.

According to figures from the European Union Spain currently has the highest unemployment rate in the eurozone at 24.3%.

“We find ourselves in a second phase of recession, which, even if it is not as brutal and deep as the first, has had a negative impact on employment,” said Engracia Hidalgo, the Spanish junior labour minister.

Prime Minister Mariano Rajoy has been forced to pass billions of euros of spending cuts and tax increases as part of efforts to reduce the country’s debt levels. Some analysts believe these have had a negative impact on employment, and the economy.

Long term unemployment up 43% in 2011

INEThe number of people that have been unemployed for three years or more increased 43.0% in 2011, according to new figures released by the National Statistics Institute (INE).

Most Spanish workers had a boss but no subordinates in the year 2011. According to the results of the subsample variables of the Economically Active Population Survey, seven out of 10 workers were in this situation, since they had jobs as employees (with a boss and without subordinates).

9.9% of the total employed persons in 2011 were independent workers (without a boss or subordinates); 6.6% were managers; 7.0% were directors of small companies, departments or branches; 5.7% were middle managers, and 0.8% were directors of large or medium-sized companies.

The percentage of employees remained the same with regard to 2010, that is, at 69.8%, whereas the percentage of managers decreased two tenths.

By sex, the percentage of male directors at least doubled the percentage of female directors, in all company sizes. In the case of the employee job, the percentage of women (77.6%) exceeded the percentage of men (63.4%).

Working conditions

92.6% of the persons employed in 2011 did not work any day in their home. 2.7% did so occasionally, and 4.0% worked from home on over half of their working days.

One in three persons (35.0%) worked at least one Saturday per month, one tenth more than in 2010. For 62.5% of employed persons, Saturday was not part of their working week in 2011.

Working on Sundays was again less customary. 78.6% of employed persons did not work any Sunday. In turn, 4.3% worked one Sunday a month (two tenths more than the previous year) and 15.9% two or more Sundays (five tenths more).

12.2% of employed persons worked the night shift (11.6% in 2010). 6.1% did so occasionally, and 6.1% on more than half of their working days. The percentage of male night shift workers (14.6%) surpassed the number of female night shift workers (9.3%).

Considering the type of hiring, the percentage of wage earners hired though a temporary employment agency (TEA) decreased from 3.0% to 2.7% in 2011, whilst 2.5% found employment through the intermediation of a public employment office (one tenth more than in 2010).

Dependency

A total of 359,500 persons worked part-time, for the purpose of having more time available to care for dependent persons in the year 2011, which were 0.6% less than in 2010.

Almost the entirety of those working part-time, in order to simultaneously work as carers, were women. 55.9% of them were of the opinion that there were not adequate services for caring for dependants, or they were unable to afford them.

Unemployed persons

The majority of unemployed persons were previously employed. In fact, for 52.1% of them, the main reason for having stopped working in the year 2011 was the end of the contract.

The number of unemployed persons who left their last job three or more years ago increased 43.0%, reaching 704,900. This figure accounted for 15.4% of the total unemployed persons, 3.9 points higher than in 2010.

You can download the full report here: Economically Active Population Survey – Subsample variables Year 2011