Spain Ends 2017 With The Largest Job Creation Figures Since 2005

employment office

Spain ended 2017 with 611.146 more people in a job, a notable improvement on the results of the previous four years, The number of people signed on with the Social Security rose 3.4% to 18.460.201 from a year earlier. For Bankia Estudios, the labour market’s performance over the year was better than expected at the start of 2017, noting that GDP growth will be close to that registered in 2016. The analysts believe that “after a loss of impetus in the third quarter, the performance over the last few months of the year would point to a renewed dynamism in activity.”

Job creation increases

There were 42.444 more people signed on with the Social Security in December, slightly less than a year earlier (+68.531). That said, in seasonally-adjusted terms, the fourth quarter of the year saw a quarterly rise of 0.91%. This would signal accelerated growth in GDP in that quarter.

The average annual rate of sign-ups to the Social Security grew 3.56% in 2017 compared with 3% in 2016.

By sectors, the growing dynamism of the manufacturing industry in 2017 is worth highlighting, as well as the construction sector and administrative activities, all of which have contributed to the acceleration in job creation. Meanwhile, the hotel and business sectors lost some of their intensity, although they continue to concentrate a big part of the jobs created in 2017. At the same time, there was a decline in the pace of job creation in the self-employed segment. The only sectors which are still seeing jobs adjustment are financial activities and agriculture.

By regions, there was still strong growth in the Balearic and Canary Islands, although not quite as intense as in 2016 when growth was extraordinary. Catalonia also saw more moderate growth in job creation last year. But other regions saw an acceleration in growth, particularly Castilla La Mancha, Navarre, Aragón, Madrid and Extremadura.

Jobless rate falls to lowest level in 8 years

The number of unemployed registered with the unemployment offices (INEM) fell by 61.500 people in December to 3.412.781, a decline of 7.84% over the year. Except in the months of July and August, when there was a rise in the unemployment rate in seasonally-adjusted terms, the trend in the unemployment has been very favourable throughout the year.

Indefinite contracts are on the rise, although they barely represent 9% of the total

In terms of the number of contracts awarded in 2017, there was a 7.62% year-on-year rise to 21.501.303. There was a 12.6% rise in indefinite contracts and a 7.15% increase in temporary ones. Just 8.97% of all contracts were indefinite, although there was a slight rise on 2016 (8.58%). In the month of December, there was a decline in contracts (-2.8%), due to the drop in temporary contracts (-3.5%), while indefinite contracts grew 7.2%.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.