Unemployment fell to 2.7 million in June for the first time since 2008, but job creation slowed

The number of people registered at the offices of the State Public Employment Service (SEPE) fell by 50,268 in June compared to the previous month, to 2,688,842, falling below 2.7 million for the first time since 2008, according to the Eph collection.

As for employment, there were some in June 54,541 average affiliates, the smallest increase for this month since 2015leaving the total number of employees at a new high of 20,869,940, as reported by the Ministries of Labour, Inclusion, Social Security and Migration on Tuesday.

Compared to last year, employment is 521,610 associates more than a year ago.

The increase in affiliation recorded in June this year is the smallest in this month since 2015, when 35,085 average associates were added to the system. In June 2022, membership doubled than this year and in 2021, four times more. In 2020, the year the pandemic began, employment increased by more than 68,000 people in the sixth month of the year.

In all economic sectors

The department headed by Yolanda Díaz pointed this out The fall in unemployment in June was of a “generalized” nature as it affected practically all economic sectors, all age groups and both sexes. In addition, the Ministry emphasized, as reported by Europa Press, that since June there have been 14 consecutive months in which unemployment has been below the limit of three million unemployed.

The fall in unemployment in June this year, fourth in order after March, April and May, is greater than the decline experienced in June 2022, when unemployment fell by 42,409 people. On the other hand, it does not exceed the sharp drop in June 2021, when the return to normality after the pandemic saw unemployment fall by 166,911 people, the largest monthly drop ever recorded.

Since the beginning of the comparable historical streak, in 1996, unemployment has fallen 26 times in June and increased twice: in 2008 due to the financial crisis, when it increased by 36,849 people, and in 2020, due to Covid, when it increased. for 5,107 unemployed.

Seasonally adjusted, registered unemployment decreased in the sixth month of 2023 by 11,257 persons.

Last year, unemployment accumulated a drop of 191,740 unemployed, which is 6.6% less, with a drop in female unemployment by 99,498 women (-5.7%) and a drop in male unemployment by 92,242 men (-8.3%).

The paper also pointed out that since June 2020, three years ago, more than a million people have left the unemployment rolls (-1,174,041 unemployed), representing a decrease of 30.4%, “a situation that occurred despite the economic uncertainty generated by war on European soil.

Services drive unemployment down

In June, unemployment fell in all economic sectors, except for agriculture, where it increased by 220 persons (+0.2 percent). The largest decline was recorded by activities which, stimulated by the arrival of the tourist season, lost 42,133 unemployed persons in June (-2.1 percent). It is followed by industry, where it decreased by 4,888 persons (-2.2%); construction, with 1,688 fewer unemployed (-0.8%), and the group without previous employment, with 1,779 fewer unemployed (-0.7%), according to Europa Press.

Unemployment fell in June for both sexes, although more among women. More precisely, female unemployment fell by 30,710 women (-1.8%), compared to the fall of male unemployment by 19,558 men (-1.8%).

Thus, at the end of June, the total number of unemployed women amounted to 1,624,317 unemployed, which is the lowest level since 2008, while the number of unemployed men amounted to 1,064,525 unemployed.

By age, unemployment among young people under 25 fell by 1.9 percent in Junewith 3,552 fewer unemployed than at the end of May, while the unemployment of persons aged 25 and over decreased by 46,716 (-1.8 percent).

The work pointed out that with the fall in June, the total number of unemployed people under the age of 25 recorded a record low level of 184,491 unemployed people, which is a figure that represents almost half of the number of unemployed people in February 2021.

Unemployment is falling in all communities

Registered unemployment fell in June in all autonomous communities, especially in Andalusia (-8760 unemployed), Catalonia (-6359 unemployed) and Galicia (-5410 unemployed).

In percentage terms, according to Europa Press, Asturias (-4.6%) and Cantabria (-4.3%) recorded the most intensive decline, while Madrid (-0.8%) and Andalusia (-1.2%) ).

As for the provinces, unemployment fell in June in all but Huelva, where it increased by 1,291. The biggest reduction in unemployment occurred in Barcelona (-4,103 unemployed), Cádiz (-4,094) and Málaga (-3,487).

Registered unemployment among foreigners decreased by 8,556 unemployed compared to the previous month (-2.4%), so that the total number of unemployed immigrants was 345,785, which is 17,156 unemployed less than a year earlier (-4.7%).

Fixed-discontinuous contracts fell by 13.9%

In June, 1,492,803 contracts were registered, 15.6% less than in the same month of 2022. Of these, 631,810 contracts were for an indefinite period, which is 19.4% less than in June 2022.

In total, 42.32% of contracts were open-ended in June, which is almost two points lower than the one recorded in May, when the share of open-ended contracts was 44.25%.

Of the total number of employment contracts for an indefinite period in June, 242,351 of them were for an indefinite period, 22.5% less than in the same month last year; 251,967 were for an indefinite period (-13.9%), and 137,492 were for an indefinite period (-22.8%).

Of all the contracts concluded in June, 860,993 of them were fixed-term contracts, which is 12.6% less than in the same month of 2022.

In the first six months of this year, slightly more than 3.42 million open-ended contracts were signed, 4.4 percent more than in the same period in 2022, and 4.23 million fixed-term contracts, 32.6 percent less.